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Exceptions - Self-Dealing by Private Foundations: Certain payments to government officials

Certain payments to government officials are not considered acts of self-dealing. These payments include:

  1. A prize or award that does not have to be included in gross income if the official receiving the prize or award is selected from the general public. (For this purpose, the recipient may keep the prize or award, and need not authorize the foundation to transfer the prize or award to a governmental unit or to another charity.)
  2. A scholarship or a fellowship grant that is to be used for study at a recognized educational organization.  (For this purpose, there is no requirement that the grant recipients be limited to degree candidates, nor must the grant be limited to tuition, fees and course-required books, supplies or equipment.  It is permissible for a recipient to use grant funds for room, board, travel, research, clerical help, or equipment, that are incidental to the purposes of the grant.)
  3. Any annuity or other payment (forming part of a stock-bonus, pension, or profit-sharing plan) from a qualified trust.
  4. Any annuity or other payment under an employees' annuity plan.
  5. Any contribution or gift (other than money), or services or facilities made available, if the total value is not more than $25 during any calendar year,
  6. Any payment made under a government employees' training program.
  7. Any payment or reimbursement of travel expenses, including meals and lodging, for travel only from one point in the United States to another in connection with charitable purposes, but only if the payment or reimbursement is not more than the actual cost of transportation plus an amount for all other traveling expenses not greater than 125 percent of the maximum payable for similar travel by U.S. government employees (without regard to any higher rates allowed in designated geographical areas)
  8. A payment under any agreement to employ or make a grant to a government official for any period after the termination of government service if the agreement is entered into within 90 days before termination.
  9. The cost of a government official's attendance or participation in a conference sponsored by the foundation in furtherance of its exempt purposes, including--
    a.  The official's share of the cost of the conference,
    b.  Professional and other non-monetary benefits of an intellectual or psychological nature received by the official from attending or participating in the conference,
    c.  Benefits to the official resulting from publication or distribution of the conference record to conference participants and
    d.  Payments, reimbursements, or reasonable advances made to the official for expenses in attending the conference.


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Page Last Reviewed or Updated: 20-Sep-2016