CHAPTER FIVESelf-Dealing

  1. *§ 5.1 Private Inurement Doctrine
  2. *§ 5.3 Definition of Self-Dealing
    1. (b) Statutory Exceptions
  3. § 5.4 Sale, Exchange, Lease, or Furnishing of Property
    1. (d) Furnishing of Goods, Services, or Facilities
    2. (e) Co-Owned Property
    3. *(f) Co-Investments
  4. § 5.6 Payment of Compensation
  5. § 5.8 Uses of Income or Assets by Disqualified Persons
    1. (c) Payment of Charitable Pledges
    2. *(d) Incidental or Tenuous Benefits
    3. (g) Other Acts
  6. *§ 5.10 Payments to Government Officials
  7. *§ 5.11 Indirect Self-Dealing
  8. § 5.12 Property Held by Fiduciary
  9. *§ 5.15 Issues Once Self-Dealing Occurs

*§ 5.1 PRIVATE INUREMENT DOCTRINE

p. 173. Insert as third complete paragraph:

An extreme example of private inurement occurred in connection with formation of a “sweat equity housing cooperative association,” with the stated purpose of preserving and rehabilitating rural properties of historic value that simultaneously serve as family homes. Each board member was accorded a possessory interest in one of the entity's residential units and a possessory interest in common with other members of other real and personal property. Needless to say, these arrangements were ruled to constitute forms of private inurement.16.1

p. 174, second paragraph. Insert as last sentence:

Because of the self-dealing rules, revocation of a private foundation's exempt status on the ground of private inurement is rare.22.1

*§ 5.3 DEFINITION OF SELF-DEALING

p. 180, fourth paragraph, third line. Delete prohibited and insert

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