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

NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

Enacted over 50 years ago, private foundations have a unique set of rules that have remained relatively unchanged despite the ever-evolving world we live in. Non-compliance with these private foundation rules have steep monetary penalties for the foundation and potentially the individuals involved in the transaction. Join us for an overview and discussion of 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

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None