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Acts of self-dealing by private foundation

 

The following transactions are generally considered acts of self-dealing between a private foundation and a disqualified person:

  1. Sale, exchange, or leasing of property,
  2. Leases (but see Certain Leases, under Exceptions to Self-Dealing)
  3. Lending money or other extensions of credit,
  4. Providing goods, services, or facilities,
  5. Paying compensation or reimbursing expenses to a disqualified person,
  6. Transferring foundation income or assets to, or for the use or benefit of, a disqualified person, and
  7. Certain agreements to make payments of money or property to government officials.

In addition, the law prohibits indirect self-dealing. Thus, transactions between organizations controlled by a private foundation may also be taxable self-dealing.

Additional information

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