Exempt organizations - Uncle Fed's Tax*Board
Exempt organizations - Uncle Fed's Tax*Board
Exempt organizations - Uncle Fed's Tax*Board
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
“specific project” and the foundation’s set-aside<br />
of all its excess earnings for four years, for which<br />
it files a timely justifying application with the Service,<br />
will be treated as a qualifying distribution<br />
under section 4942(g)(2), in applying the income<br />
test prescribed by section 4942(j)(3)(A) for each<br />
taxable year in which such earnings are set aside<br />
and remain unexpended. §53.4942(a)–3. (Sec.<br />
4942, ’86 Code.)<br />
Rev. Rul. 74-450, 1974-2 C.B. 388.<br />
214.76 Qualifying distributions; set-aside<br />
amount. A private foundation may set aside, by<br />
means of a bookkeeping entry, the amount by<br />
which its minimum investment return for its<br />
immediately preceding taxable year exceeds its<br />
adjusted net income for that year. §53.4942(a)–3.<br />
(Sec. 4942, ’86 Code.)<br />
Rev. Rul. 78-148, 1978-1 C.B. 380.<br />
214.77 Reliance on status of grantees. Guidelines<br />
under which grant-making private foundations<br />
will not be considered to be responsible for<br />
substantial and material changes in the sources of<br />
financial support of recipient <strong>organizations</strong> that<br />
are described in sections 170(b)(1)(A)(vi) or<br />
509(a)(2) of the Code. Rev. Proc. 81-6 amplified.<br />
§§1.170A-9, 1.509(a)-3. (Sec. 601.105, S.P.R.;<br />
Secs. 170, 509, ’86 Code.)<br />
Rev. Proc. 89-23, 1989-1 C.B. 844.<br />
214.78 Repayment of loan from corpus. A private<br />
foundation that made an interest-free loan<br />
from corpus to a public charity in a year in which<br />
its distribution requirements had been met and that<br />
continued to meet the distribution requirements<br />
during the five-year adjustment period without<br />
use of the excess of qualifying distributions<br />
created by the loan is not required to include in its<br />
gross income repayments on the loan and may<br />
return the payments to corpus. §53.4942(a)–2.<br />
(Sec. 4942, ’86 Code.)<br />
Rev. Rul. 77-252, 1977-2 C.B. 390.<br />
214.79 Returns; extension of time; status<br />
pending. Conditions are updated and restated<br />
under which certain private foundations will be<br />
deemed to have reasonable cause for failure to<br />
comply with requirements for filing of returns and<br />
payment of taxes. The temporary relief from penalties<br />
previously provided for <strong>organizations</strong><br />
awaiting determinations under section 509(a) or<br />
170(b)(1)(A) is also extended. Rev. Proc. 72-31<br />
superseded. §§1.501(c)(3)-1, 1.508-1,<br />
1.509(a)-1, 1.6033-2, 1.6056-1, 301.6104-4,<br />
301.6151-1, 301.6652-2. (Sec. 601.201, S.P.R.;<br />
Secs. 501, 508, 509, 6011, 6033, 6056, 6104,<br />
6151, 6651, 6652, ’86 Code.)<br />
Rev. Proc. 79-8, 1979-1 C.B. 487.<br />
214.80 Returns; extension of time for filing;<br />
status pending. Certain <strong>organizations</strong> exempt<br />
under section 501(c)(3) awaiting a determination<br />
of their private foundation status under section<br />
509 are granted an extension of time to file Part III<br />
of Forms 990 and 990-AR until thirty days after<br />
notification of status is received or six months<br />
from the due date for filing these returns, whichever<br />
occurs first. §1.6081–1. (Sec. 6081, ’86<br />
Code.)<br />
Rev. Rul. 71-236, 1971-1 C.B. 398.<br />
214.81 Rulings; jeopardizing investments.<br />
The Service cannot issue a ruling that use of a proposed<br />
investment procedure by a private foundation<br />
will preclude imposition of tax under the provisions<br />
of section 4944. §53.4944–1. (Sec. 4944,<br />
’86 Code.)<br />
Rev. Rul. 74-316, 1974-2 C.B. 389.<br />
214.82 Rulings; publicly supported <strong>organizations</strong>.<br />
An organization described in section<br />
501(c)(3) having a first taxable year consisting of<br />
exactly eight months and that meets the requirements<br />
of section 170(b)(1)(A)(vi) is entitled to a<br />
ruling or determination letter that it is not a private<br />
foundation. §1.170A-9. (Sec. 170, ’86 Code.)<br />
Rev. Rul. 76-27, 1976-1 C.B. 64.<br />
214.83 Rulings; publicly supported <strong>organizations</strong>.<br />
The requirement of reg. 1.170A-9(e)(5)(i)<br />
that an organization must have been in existence<br />
for at least one taxable year consisting of at least<br />
eight months in order to obtain a ruling or determination<br />
letter that it is not a private foundation by<br />
virtue of being described in sections 509(a)(1) and<br />
170(b)(1)(A)(vi) does not apply to section<br />
170(b)(1)(A)(iv) <strong>organizations</strong>. §§1.170A-9,<br />
1.509(a)-2. (Secs. 170, 509; ’86 Code.)<br />
Rev. Rul. 77-407, 1977-2 C.B. 77.<br />
214.84 Rulings; publicly supported <strong>organizations</strong>;<br />
extended advance ruling. A newly created<br />
organization, exempt from tax under section<br />
501(c)(3), that wishes to obtain an extended<br />
advance ruling for purposes of determining<br />
whether it will qualify as a publicly supported<br />
organization must submit a request for the<br />
extended advance ruling at the same time as its<br />
request for an initial advance ruling. §§1.170A-9,<br />
1.509(a)-3. (Secs. 170, 509; ’86 Code.)<br />
Rev. Rul. 77-115, 1977-1 C.B. 154.<br />
214.85 Rulings and determination letters;<br />
grant-making procedures. Procedures are provided<br />
for issuing rulings and determination, opinion,<br />
notification, and information letters and for<br />
entering into closing agreements on specific<br />
issues in employee plans and exempt organization<br />
matters. Rev. Proc. 80-24 superseded; Rev. Procs.<br />
76-47 and 80–39 modified. Modified by Rev.<br />
Proc. 83-41. (Sec. 601.201, S.P.R.)<br />
Rev. Proc. 83-36, 1983-1 C.B. 763.<br />
214.86 Rulings and determination letters;<br />
procedures. Updated procedures are provided for<br />
issuing rulings and determination letters on private<br />
foundation status under section 509(a) and<br />
operating foundation status under section<br />
4942(j)(3) for <strong>organizations</strong> exempt from income<br />
tax under section 501(c)(3). Rev. Procs. 73–7<br />
superseded and 72–50 superseded in part. Supplemented<br />
by Rev. Proc. 77–21. Modified by Rev.<br />
Proc. 80-25. §§1.509(a)-1. (Sec. 601.201, S.P.R.;<br />
Secs. 509, 4942, 4947, ’86 Code.)<br />
Rev. Proc. 72–50, 1972–2 C.B. 830; Rev. Proc.<br />
76-34, 1976-2 C.B. 656.<br />
214.87 Rulings and determination letters;<br />
procedures; appeals and protests. Procedures<br />
are provided for applying for recognition of<br />
exemption under section 501 and 521 and for<br />
revoking or modifying exemption rulings and<br />
determination letters. Rev. Proc. 80–25 superseded<br />
and Rev. Proc. 76-34 modified.<br />
§§1.170A-1, 1.501(a)-1, 1.509(a)-1, 1.521-1,<br />
53.4942(b)-1, 1.9100-1. (Sec. 601.201, S.P.R.;<br />
Secs. 170, 501, 509, 521, 4942, 7428, ’86 Code.)<br />
Rev. Proc. 84-46, 1984-1 C.B. 541.<br />
214.88 Self-dealing; church membership<br />
dues of disqualified person. Payment by a private<br />
foundation of a disqualified person’ s church membership<br />
dues in order to maintain that per son’s<br />
church membership is an act of self-dealing.<br />
§53.4941(d)-2. (Sec. 4941, ’86 Code.)<br />
Rev. Rul. 77-160, 1977-1 C.B. 351.<br />
214.89 Self-dealing; contribution to public<br />
charity. A contribution by a private foundation to<br />
a public charity made on the condition that the<br />
public charity change its name to that of a substantial<br />
contributor to the foundation and agree not to<br />
change the name again for 100 years does not<br />
constitute an act of self-dealing. §53.4941(d)–2.<br />
(Sec. 4941, ’86 Code.)<br />
Rev. Rul. 73 -407, 1973-2 C.B. 383.<br />
214.90 Self-dealing; different tax years. Adisqualified<br />
person with a tax year differing from that<br />
of the private foundation from which he borrows<br />
<strong>Exempt</strong> <strong>organizations</strong><br />
money computes the initial tax on self-dealing<br />
based upon his own tax year. §53.4941(a)-1. (Sec.<br />
4941, ’86 Code.)<br />
Rev. Rul. 75-391, 1975-2 C.B. 446.<br />
214.91 Self-dealing; disqualified persons;<br />
bond purchase. The purchase of a portion of a<br />
bond issue on behalf of an exempt hospital by a<br />
disqualified person with respect to a private<br />
foundation that guaranteed the bonds except for<br />
those sold to the disqualified person is not an act<br />
of self-dealing. §53.4941(d)–1. (Sec. 4941, ’86<br />
Code.)<br />
Rev. Rul. 77-6, 1977-1 C.B. 350.<br />
214.92 Self-dealing; disqualified persons<br />
serving as trustees of grant recipient. A grant<br />
authorized by an exempt private foundation to an<br />
exempt hospital for modernization, replacement,<br />
and expansion does not constitute an act of selfdealing<br />
even though two individuals serve as trustees<br />
of both <strong>organizations</strong>. Clarified by Rev. Rul.<br />
82-136. §53.4941(d)-1. (Sec. 4941, ’56 Code.)<br />
Rev. Rul. 75-42, 1975-1 C.B. 359.<br />
214.93 Self-dealing; disqualified persons<br />
serving as trustees of grant recipient. A grant by<br />
a private foundation to a second private foundation<br />
does not constitute an act of self-dealing<br />
within the meaning of section 4941 even though a<br />
banking institution serves as sole trustee of both<br />
foundations. Rev. Rul. 75-42 clarified.<br />
§53.4941(d)-1. (Sec. 4941, ’86 Code.)<br />
Rev. Rul. 82-136, 1982-2 C.B. 300.<br />
214.94 Self-dealing; educational program;<br />
incidental benefit to disqualified person. A private<br />
foundation made a grant to an exempt university<br />
to establish an educational program providing<br />
instruction in manufacturing engineering.<br />
A corporation that is a disqualified person with<br />
respect to the private foundation intends to hire<br />
graduates of the new program and encourage its<br />
employees to enroll in the program, but will not<br />
receive preferential treatment in recruiting graduates<br />
or enrolling its employees. The grant is not an<br />
act of self-dealing. §53.4941(d)–1. (Sec. 4941, ’86<br />
Code.)<br />
Rev. Rul. 80-310, 1980-2 C.B. 319.<br />
214.95 Self-dealing; excess business holdings.<br />
In the proposed sale to a disqualified person of a<br />
private foundation’s 15-percent interest in a corporation,<br />
in which the foundation and all disqualified<br />
persons with respect to the foundation have<br />
combined holdings of 45 percent of the voting<br />
stock as of May 26, 1969, the disqualified person<br />
would be subject to the tax on self-dealing<br />
imposed by section 4941 ; in a similar situation in<br />
which the total combined holdings of the foundation<br />
and disqualified persons are 55 percent, the<br />
foundation has excess business holdings under<br />
section 4943(c)(4), and section 101(1)(2)(B) of<br />
the Tax Reform Act of 1969 would apply to except<br />
the proposed sale from the provisions of section<br />
4941. §53.4941(d)-4. (Sec. 4941, ’86 Code.)<br />
Rev. Rul. 75-25, 1975-1 C.B. 359.<br />
214.96 Self-dealing; exchange of securities;<br />
former disqualified person. An act of self-dealing<br />
will not result from the exchange of securities<br />
between a private foundation and a corporation<br />
that was previously a disqualified person by reason<br />
of the ownership of more than 35 percent of its<br />
total combined voting power by the former<br />
foundation manager, who resigned 5 years prior to<br />
the exchange, and who did not participate in planning<br />
the exchange offer during the period of disqualification.<br />
§§53.4941(d)-2, 53.4946-1. (Secs.<br />
4941, 4946; ’86 Code.)<br />
Rev. Rul. 76-448, 1976-2 C.B. 368.<br />
214.97 Self-dealing; foundation and trust<br />
with same trustee. A transaction in which a private<br />
foundation purchased property from a testamentary<br />
trust that is not a disqualified person with<br />
respect to the foundation, both of which had the