Private Foundation Pitfalls: Self-Dealing, Taxable Expenditures, and More (Completed)

Date: Tuesday, September 21, 2021
Instructor: Sarah Huang, Clark Nuber, Celia Davis
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs

In addition to complying with the basic rules of §501(c)(3), private foundations have an additional layer of regulatory compliance. Many of these rules were enacted over 50 years ago and have remained unchanged since then, despite the ever-evolving world we live in. Non-compliance with these private foundation rules can have steep monetary penalties for the foundation, and in some cases, the individuals involved in the transaction. Join us for an overview and discussion on common traps for private foundations and learn strategies to avoid them going forward.

Who Should Attend
CPAs, CFOs, auditors, bookkeepers, staff accountants, board members, and others working with not-for-profit entities.

Topics Covered

  • Identification of interested persons and self-dealing transactions
  • Excess business holding rules, permissible holding strategies, and jeopardizing investments
  • Taxable expenditures including grants to individuals, grants to non-charitable organizations, and grants to other private foundations
  • Permissible lobbying and prohibited political activities
  • Moving forward after failing to meet the annual distribution requirements
  • Overview of Form 4720 and actions required to correct a transaction

Learning Objectives

  • Identify all disqualified persons of the foundation and put measures in place to prevent self-dealing transactions
  • Recognize when an investment or expenditure may trigger unfavorable tax consequences for a private foundation
  • Describe what actions are involved for correction when a pitfall transaction occurs


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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