book

Private Foundations

by Bruce R. Hopkins, Jody Blazek

November 2017

Intermediate to advanced

256 pages

7h 46m

English

Wiley

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§ 1.6 FOUNDATIONS IN OVERALL EXEMPT ORGANIZATIONS CONTEXT*§ 1.10 PRIVATE FOUNDATIONS SANCTIONS
§ 2.5 ACQUIRING RECOGNITION OF TAX-EXEMPT STATUS§ 2.7 WHEN TO REPORT BACK TO THE IRSNOTES
§ 3.1 PRIVATE OPERATING FOUNDATIONS*§ 3.1A EXEMPT OPERATING FOUNDATIONS
§ 4.4 FAMILY MEMBERSNOTES
*§ 5.1 PRIVATE INUREMENT DOCTRINE*§ 5.3 DEFINITION OF SELF-DEALING§ 5.4 SALE, EXCHANGE, LEASE, OR FURNISHING OF PROPERTY§ 5.6 PAYMENT OF COMPENSATION§ 5.8 USES OF INCOME OR ASSETS BY DISQUALIFIED PERSONS*§ 5.10 PAYMENTS TO GOVERNMENT OFFICIALS§ 5.11 INDIRECT SELF-DEALING§ 5.12 PROPERTY HELD BY FIDUCIARY*§ 5.15 ISSUES ONCE SELF-DEALING OCCURSNOTES
§ 6.2 ASSETS USED TO CALCULATE MINIMUM INVESTMENT RETURN§ 6.5 QUALIFYING DISTRIBUTIONS§ 6.7 SATISFYING THE DISTRIBUTION TESTNOTES

§ 7.1 GENERAL RULES§ 7.2 PERMITTED AND EXCESS HOLDINGS§ 7.3 FUNCTIONALLY RELATED BUSINESSES*§ 7.4 RULES APPLICABLE TO CERTAIN SUPPORTING ORGANIZATIONS§ 7.6 EXCISE TAXES ON EXCESS HOLDINGSNOTES
§ 8.1 GENERAL RULES§ 8.2 PRUDENT INVESTMENTS§ 8.3 PROGRAM-RELATED INVESTMENTSNOTES
§ 9.1 LEGISLATIVE ACTIVITIES§ 9.2 POLITICAL CAMPAIGN ACTIVITIES§ 9.3 GRANTS TO INDIVIDUALS§ 9.4 GRANTS TO PUBLIC CHARITIES*§ 9.4A GRANTS TO EXEMPT OPERATING FOUNDATIONS§ 9.5 GRANTS TO FOREIGN ORGANIZATIONS*§ 9.6 EXPENDITURE RESPONSIBILITY*§ 9.9 DISTRIBUTIONS TO CERTAIN SUPPORTING ORGANIZATIONS§ 9.10 EXCISE TAX FOR TAXABLE EXPENDITURESNOTES
§ 10.3 FORMULA FOR TAXABLE INCOMENOTES
§ 11.1 GENERAL RULES*§ 11.2 EXCEPTIONS§ 11.3 RULES SPECIFICALLY APPLICABLE TO PRIVATE FOUNDATIONS§ 11.5 CALCULATING AND REPORTING THE TAXNOTES
§ 12.1 SUCCESSFUL PREPARATION OF FORM 990-PF§ 12.2 REPORTS UNIQUE TO PRIVATE FOUNDATIONS§ 12.3 COMPLIANCE ISSUESNOTES
§ 13.4 OPERATION AS A PUBLIC CHARITY§ 13.5 MERGERS, SPLIT-UPS, AND TRANSFERS BETWEEN FOUNDATIONSNOTES
*§ 15.4 PUBLICLY SUPPORTED ORGANIZATIONS DONATIVE ENTITIES§ 15.5 SERVICE PROVIDER ORGANIZATIONS§ 15.7 SUPPORTING ORGANIZATIONS§ 15.8 CHANGE OF PUBLIC CHARITY CATEGORYNOTES
§ 17.3 PRIVATE INUREMENT DOCTRINE§ 17.5 SELF-DEALING RULESNOTES
§ 18.1 STATE LAW OVERVIEW§ 18.2 BOARD OF DIRECTORS BASICS§ 18.3 PRINCIPLES OF FIDUCIARY RESPONSIBILITY§ 18.4 DUTIES OF DIRECTORS§ 18.5 BOARD COMPOSITION AND FEDERAL TAX LAW§ 18.6 SOURCES OF NONPROFIT GOVERNANCE PRINCIPLES§ 18.7 RELEVANT NONPROFIT GOVERNANCE ISSUES§ 18.8 NONPROFIT GOVERNANCE POLICIES§ 18.9 ROLE OF IRS IN NONPROFIT GOVERNANCE§ 18.10 GOVERNANCE PRINCIPLES AND PRIVATE FOUNDATIONSNOTES

Content preview from Private Foundations

CHAPTER ONEIntroduction to Private Foundations

§ 1.6 FOUNDATIONS IN OVERALL EXEMPT ORGANIZATIONS CONTEXT

p. 18, note 82. Insert as second paragraph:

The Tax Exempt and Government Entities Division, on October 1, 2015, issued its work plan for the federal government's fiscal year 2016. This work plan identifies TE/GE's five key areas of focus in the coming months. One of these areas is “knowledge management.” The Division is developing a “knowledge management framework,” which entails gathering information from employees and staffing the “knowledge networks” (what the IRS likes to refer to as “K-Nets”). The IRS has begun building knowledge libraries within each K-Net, containing technical resources searchable by key issue areas and resource type. One K-Net that is currently under way concerns private foundation tax law.

*§ 1.10 PRIVATE FOUNDATIONS SANCTIONS

p. 26, second complete paragraph, last line. Insert footnote at end of line:

*137.1

Even the IRS, from time to time, gets this one wrong. For example, in a private letter ruling, the IRS stated that certain payments to disqualified persons by a private foundation “would be acts of self-dealing that are prohibited by Chapter 42 of the Internal Revenue Code” (Priv. Ltr. Rul. 201703003).