Private Foundations

CHAPTER SIXMandatory Distributions

1. § 6.2 Assets Used to Calculate Minimum Investment Return
   1. (c) Exempt Function Assets
2. § 6.5 Qualifying Distributions
   1. *(a) Direct Grants
   2. *(e) Set-Asides
3. § 6.7 Satisfying the Distribution Test

§ 6.2 ASSETS USED TO CALCULATE MINIMUM INVESTMENT RETURN

(c) Exempt Function Assets

p. 279. Insert following last bullet point:

• Operation of a sheep ranch.^32.1
• Stock holding in a corporation engaging in curatorial activities and management of legacy of an artist (the foundation's founder).^32.2
• Land leased to a government agency to be used for a governmental purpose.^32.3

§ 6.5 QUALIFYING DISTRIBUTIONS

p. 298, first complete paragraph, first bullet point, third line. Delete contribution and insert grant.

p. 298, first complete paragraph, first bullet point, fifth line. Delete or and insert a comma.

p. 298, first complete paragraph, first bullet point, sixth line. Insert following existing text:

to a Type III supporting organization that is not a functionally integrated Type III supporting organization,^111.1 or to a Type I supporting organization.^111.2 a Type II supporting organization,^111.3 or functionally integrated Type III supporting organization^111.4 if a disqualified person with respect to the private foundation controls the organization or a supporting organization with respect to it (or if the IRS determines by regulations that a distribution to the organization otherwise is inappropriate),

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