{"product_id":"the-tax-law-of-private-foundations-isbn-9781394252299","title":"The Tax Law of Private Foundations","description":"\u003cp\u003e\u003cb\u003eInsightful analysis and explanations of private foundation tax law along with hands-on practice tools that make compliance easier\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eNow in its seventh edition, \u003ci\u003eThe Tax Law of Private Foundations\u003c\/i\u003e by Bruce Hopkins and Shane Hamilton serves as the gold-standard reference for navigating the complex regulations governing private foundations. This comprehensive book is regularly updated to incorporate the latest changes in tax law, providing executives and professionals with valuable clarification, expert insights, and practical instruction. \u003c\/p\u003e\u003cp\u003eWith every edition supplemented annually, the book remains current and relevant. It offers a clear and concise summary of the regulations governing private foundations, explaining the logic underpinning the rules. The authors provide a range of helpful tools, including checklists, sample documents, and practice forms, to simplify the filing process and ensure compliance with the latest legislation. Readers will also find: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eCritical analyses and considerations of existing laws and regulations, avoiding potential confusion arising from future legislation\u003c\/li\u003e \u003cli\u003eA collection of practical tools that make it simpler to comply with the regulations governing private foundations\u003c\/li\u003e \u003cli\u003eExpert guidance on obtaining or maintaining your foundation's tax-exempt status\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAn indispensable resource, this latest edition caters to individuals with personal or professional interests in private foundations, offering authoritative guidance and complete explanations in an intricate and sometimes confusing area of the law. Whether navigating the complexities of compliance or seeking deep insights, this book remains the go-to reference for understanding and managing this difficult area of taxation. \u003c\/p\u003e\u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eBook Citations xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction to Private Foundations 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Private Foundations: Unique Organizations 1\u003c\/p\u003e \u003cp\u003e1.2 Definition of Private Foundation 2\u003c\/p\u003e \u003cp\u003e1.4 Private Foundation Law Primer 2\u003c\/p\u003e \u003cp\u003e(f) Excess Business Holdings Rules 2\u003c\/p\u003e \u003cp\u003e(l) Unrelated Business Rules 2\u003c\/p\u003e \u003cp\u003e1.7 Organizational Rules 2\u003c\/p\u003e \u003cp\u003e1.8 Private Foundation Law Sanctions 3\u003c\/p\u003e \u003cp\u003e(b) Self-Dealing Sanctions as Pigouvian Taxes 3\u003c\/p\u003e \u003cp\u003e(c) Self-Dealing Sanctions: Taxes or Penalties? 4\u003c\/p\u003e \u003cp\u003e(e) Potential of Overlapping Taxes 5\u003c\/p\u003e \u003cp\u003e1.9 Statistical Profile 5\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Starting, Funding, and Governing a Private Foundation 7\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.3 Choice of Organizational Form 7\u003c\/p\u003e \u003cp\u003e2.4 Funding a Foundation 7\u003c\/p\u003e \u003cp\u003e2.6 Foundations and Planned Giving 7\u003c\/p\u003e \u003cp\u003e(b) Charitable Remainder Trusts 7\u003c\/p\u003e \u003cp\u003e(d) Interrelationships with Private Foundation Rules 8\u003c\/p\u003e \u003cp\u003e2.7 Acquiring Recognition of Tax-Exempt Status 8\u003c\/p\u003e \u003cp\u003e(a) Form 1023 8\u003c\/p\u003e \u003cp\u003e(b) 27-Month Rule 9\u003c\/p\u003e \u003cp\u003e(c) IRS Determination Letters Recognizing Exempt Status 9\u003c\/p\u003e \u003cp\u003e(d) Administrative Procedures When Recognition Denied 9\u003c\/p\u003e \u003cp\u003e(e) Declaratory Judgment Procedures When Recognition Denied 10\u003c\/p\u003e \u003cp\u003e(f) Recognition of Foreign Organizations 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Types of Private Foundations 11\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Private Operating Foundations 11\u003c\/p\u003e \u003cp\u003e(d) Income Test 11\u003c\/p\u003e \u003cp\u003e(h) Conversion to or from Private Operating Foundation Status 11\u003c\/p\u003e \u003cp\u003e3.2 Exempt Operating Foundations 12\u003c\/p\u003e \u003cp\u003e3.3 Conduit Foundations 13\u003c\/p\u003e \u003cp\u003e3.6 Nonexempt Charitable Trusts 14\u003c\/p\u003e \u003cp\u003e3.7 Split-Interest Trusts 15\u003c\/p\u003e \u003cp\u003e3.8 Foreign Private Foundations 16\u003c\/p\u003e \u003cp\u003e(a) Gross Investment Income Tax 16\u003c\/p\u003e \u003cp\u003e(b) Withholding Tax 17\u003c\/p\u003e \u003cp\u003e(c) 85 Percent Support Test 18\u003c\/p\u003e \u003cp\u003e(d) Return Filing Obligations 19\u003c\/p\u003e \u003cp\u003e(e) Establishing Public Charity Status 19\u003c\/p\u003e \u003cp\u003e(f) Loss of Exemption (Prohibited Transactions) 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Disqualified Persons 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.5 Corporations or Partnerships 21\u003c\/p\u003e \u003cp\u003e4.8 Governmental Officials 21\u003c\/p\u003e \u003cp\u003e4.9 Termination of Disqualified Person Status 21\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Self-Dealing 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.4 Sale, Exchange, Lease, or Furnishing of Property 23\u003c\/p\u003e \u003cp\u003e(e) Furnishing of Goods, Services, or Facilities 23\u003c\/p\u003e \u003cp\u003e(g) Coinvestments 24\u003c\/p\u003e \u003cp\u003e5.5 Loans and Other Extensions of Credit 24\u003c\/p\u003e \u003cp\u003e5.6 Payment of Compensation 24\u003c\/p\u003e \u003cp\u003e(e) Excess Executive Compensation Tax 24\u003c\/p\u003e \u003cp\u003e(i) Reporting of Compensation 25\u003c\/p\u003e \u003cp\u003e5.8 Uses of Income or Assets by Disqualified Persons 25\u003c\/p\u003e \u003cp\u003e(c) Payment of Charitable Pledges 25\u003c\/p\u003e \u003cp\u003e(e) Incidental or Tenuous Benefits 26\u003c\/p\u003e \u003cp\u003e5.9 Sharing Space, People, and Expenses 26\u003c\/p\u003e \u003cp\u003e(b) Office Space and Personnel 26\u003c\/p\u003e \u003cp\u003e5.10 Payments to Governmental Officials 26\u003c\/p\u003e \u003cp\u003e5.11 Indirect Self-Dealing 27\u003c\/p\u003e \u003cp\u003e(b) Concept of Control 27\u003c\/p\u003e \u003cp\u003e5.12 Estate Administration Exception 27\u003c\/p\u003e \u003cp\u003e(a) Concept of the Expectancy 27\u003c\/p\u003e \u003cp\u003e(b) Estate Administration Exception— General Rules 27\u003c\/p\u003e \u003cp\u003e5.14 Additional Exceptions 28\u003c\/p\u003e \u003cp\u003e(b) Transitional Rules (Savings Provisions) 28\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Mandatory Distributions 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Mandatory Distribution Requirement 29\u003c\/p\u003e \u003cp\u003e(a) Purpose and Policy 29\u003c\/p\u003e \u003cp\u003e6.2 Minimum Investment Return 29\u003c\/p\u003e \u003cp\u003e(d) Exempt Function Assets 29\u003c\/p\u003e \u003cp\u003e6.3 Determining Fair Market Value 30\u003c\/p\u003e \u003cp\u003e(c) Other Assets 30\u003c\/p\u003e \u003cp\u003e6.4 Qualifying Distributions 30\u003c\/p\u003e \u003cp\u003e(a) General Definitions and Rules 30\u003c\/p\u003e \u003cp\u003e(b) Charitable Grants in General 31\u003c\/p\u003e \u003cp\u003e (c) Grants to Controlled Organizations and Other Foundations 31\u003c\/p\u003e \u003cp\u003e(d) Grantor Reliance Standards 31\u003c\/p\u003e \u003cp\u003e(f) Direct Charitable Expenditures 32\u003c\/p\u003e \u003cp\u003e(g) Set-Asides 32\u003c\/p\u003e \u003cp\u003e6.5 Excise Taxes on Failure to Distribute Income 35\u003c\/p\u003e \u003cp\u003e(b) Ordering Rule for Qualifying Distributions 35\u003c\/p\u003e \u003cp\u003e(e) Valuation Mistakes 35\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Excess Business Holdings 37\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Overview 37\u003c\/p\u003e \u003cp\u003e7.2 Definitions and Limitations on Business Holdings 38\u003c\/p\u003e \u003cp\u003e(a) Definition of Business Enterprise 38\u003c\/p\u003e \u003cp\u003e(b) Passive Income Businesses 40\u003c\/p\u003e \u003cp\u003e(c) Percentage Limitations 43\u003c\/p\u003e \u003cp\u003e(d) Permitted and Excess Holdings 48\u003c\/p\u003e \u003cp\u003e(e) Constructive Ownership 48\u003c\/p\u003e \u003cp\u003e(f) Disposition Periods 53\u003c\/p\u003e \u003cp\u003e(g) History of Excess Business Holdings Rules 55\u003c\/p\u003e \u003cp\u003e7.3 Functionally Related Businesses 56\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Jeopardizing Investments 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 General Rules 57\u003c\/p\u003e \u003cp\u003e(b) Contributed Assets 57\u003c\/p\u003e \u003cp\u003e8.2 Prudent Investments 57\u003c\/p\u003e \u003cp\u003e(g) Mission-Related Investments 57\u003c\/p\u003e \u003cp\u003e8.3 Program-Related Investments 58\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Taxable Expenditures 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.2 Political Campaign Activities 61\u003c\/p\u003e \u003cp\u003e(c) Voter Registration Drives 61\u003c\/p\u003e \u003cp\u003e9.3 Grants to Individuals 62\u003c\/p\u003e \u003cp\u003e(b) Individual Grants for Charitable or Other Permitted Purposes 62\u003c\/p\u003e \u003cp\u003e(d) Individual Grants for Travel, Study, or Other Similar Purposes 62\u003c\/p\u003e \u003cp\u003e(f) IRS Approval of Grant Procedures 64\u003c\/p\u003e \u003cp\u003e(g) Individual Grant Intermediaries and Earmarking 69\u003c\/p\u003e \u003cp\u003e9.4 Grants to Public Charities 69\u003c\/p\u003e \u003cp\u003e(a) Types of Public Charity Grantees 69\u003c\/p\u003e \u003cp\u003e(b) Grantor Reliance Standards 69\u003c\/p\u003e \u003cp\u003e(c) Intermediary and Secondary Grantees 70\u003c\/p\u003e \u003cp\u003e9.5 Grants to Exempt Operating Foundations 70\u003c\/p\u003e \u003cp\u003e9.6 Grants to Foreign Organizations 70\u003c\/p\u003e \u003cp\u003e(b) Good Faith (Equivalency) Determinations 70\u003c\/p\u003e \u003cp\u003e9.7 Expenditure Responsibility 70\u003c\/p\u003e \u003cp\u003e(c) Grant Terms 70\u003c\/p\u003e \u003cp\u003e9.8 Spending for Noncharitable Purposes 70\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Tax on Investment Income 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Rate of Tax 71\u003c\/p\u003e \u003cp\u003e10.4 Calculating Taxable Net Investment Income 71\u003c\/p\u003e \u003cp\u003e(b) Capital Gains and Losses 71\u003c\/p\u003e \u003cp\u003e(h) Partnership and S Corporation Income 71\u003c\/p\u003e \u003cp\u003e10.5 Reductions to Gross Investment Income 72\u003c\/p\u003e \u003cp\u003e(a) Deductions Allowed 72\u003c\/p\u003e \u003cp\u003e(b) Deductions Not Allowed 72\u003c\/p\u003e \u003cp\u003e10.6 Foreign Private Foundations 72\u003c\/p\u003e \u003cp\u003e10.7 Exemption from Tax on Investment Income 72\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Unrelated Business Activity 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 General Rules 73\u003c\/p\u003e \u003cp\u003e(e) Real Estate Activities 73\u003c\/p\u003e \u003cp\u003e11.2 Exceptions 74\u003c\/p\u003e \u003cp\u003e11.3 Rules Specifically Applicable to Private Foundations 75\u003c\/p\u003e \u003cp\u003e(a) Direct Conduct of Unrelated Activities 75\u003c\/p\u003e \u003cp\u003e(b) Ownership Interests in Unrelated Businesses 76\u003c\/p\u003e \u003cp\u003e(c) Partnerships and S Corporations 77\u003c\/p\u003e \u003cp\u003e(c-1) Specified Payments from Controlled Entities 77\u003c\/p\u003e \u003cp\u003e(e) Provision of Technical Assistance 78\u003c\/p\u003e \u003cp\u003e11.4 Unrelated Debt-Financed Income Rules 78\u003c\/p\u003e \u003cp\u003e(a) Acquisition Indebtedness 78\u003c\/p\u003e \u003cp\u003e11.5 Calculating and Reporting the Tax 78\u003c\/p\u003e \u003cp\u003e(b) Bucketing Rule 78\u003c\/p\u003e \u003cp\u003e(d) Tax Computation and Reporting Rules 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Tax Reporting and Administrative Issues 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Form 990-PF 81\u003c\/p\u003e \u003cp\u003e(a) Annual Form 990-PF Filing Requirement 81\u003c\/p\u003e \u003cp\u003e(c) Reporting Changes on Form 990-PF 82\u003c\/p\u003e \u003cp\u003e(d) Other Changes 82\u003c\/p\u003e \u003cp\u003e12.2 Form 990-PF Penalties 82\u003c\/p\u003e \u003cp\u003e(a) Daily Delinquency Penalty 82\u003c\/p\u003e \u003cp\u003e(c) Reasonable Cause 83\u003c\/p\u003e \u003cp\u003e12.3 Public Disclosure and Inspection of Returns and Applications 83\u003c\/p\u003e \u003cp\u003e(a) Disclosure Obligations of Private Foundations 83\u003c\/p\u003e \u003cp\u003e(c) IRS’s Disclosure Obligations 84\u003c\/p\u003e \u003cp\u003e12.4 Reporting and Payment of Excise Taxes 84\u003c\/p\u003e \u003cp\u003e(b) Additions to Tax and Penalties 84\u003c\/p\u003e \u003cp\u003e(d) Form 4720 Statute of Limitations 85\u003c\/p\u003e \u003cp\u003e12.5 Determination Letters and Letter Rulings 85\u003c\/p\u003e \u003cp\u003e(a) Form 8940 Miscellaneous Determination Requests 85\u003c\/p\u003e \u003cp\u003e(b) Letter Rulings 86\u003c\/p\u003e \u003cp\u003e(c) Reliance on Determinations and Rulings 86\u003c\/p\u003e \u003cp\u003e12.6 IRS Examinations of Private Foundations 87\u003c\/p\u003e \u003cp\u003e(a) Types of Examinations 87\u003c\/p\u003e \u003cp\u003e(b) General IRS EO Examination Practices and Procedures 87\u003c\/p\u003e \u003cp\u003e12.7 Revocation of Tax-Exempt Status 88\u003c\/p\u003e \u003cp\u003e(a) Automatic Revocation for Non-Filing 88\u003c\/p\u003e \u003cp\u003e(b) Retroactive Revocation 88\u003c\/p\u003e \u003cp\u003e(c) IRS Administrative Appeal Procedures 89\u003c\/p\u003e \u003cp\u003e(d) Contesting Revocation in Court 89\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Termination of Foundation Status 91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Voluntary Termination 91\u003c\/p\u003e \u003cp\u003e13.3 Transfer of Assets to a Public Charity 91\u003c\/p\u003e \u003cp\u003e(a) General Rules 91\u003c\/p\u003e \u003cp\u003e13.4 Operation as a Public Charity 92\u003c\/p\u003e \u003cp\u003e(b) Initial Notice 92\u003c\/p\u003e \u003cp\u003e(c) Advance Ruling Requests 92\u003c\/p\u003e \u003cp\u003e(d) Final Notice 93\u003c\/p\u003e \u003cp\u003e13.5 Mergers, Split-Ups, and Transfers Between Foundations 98\u003c\/p\u003e \u003cp\u003e(b) Complete Asset Transfers to Controlled Foundations 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Charitable Giving Rules 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Concept of Gift 95\u003c\/p\u003e \u003cp\u003e14.2 Basic Rules 96\u003c\/p\u003e \u003cp\u003e(a) Percentage Limitations 96\u003c\/p\u003e \u003cp\u003e14.6 Special Gift Situations 96\u003c\/p\u003e \u003cp\u003e(g) Conservation Property 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Public Charities 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.3 Public Institution Charities 97\u003c\/p\u003e \u003cp\u003e(b) Educational Institutions 97\u003c\/p\u003e \u003cp\u003e15.4 Donative Publicly Supported Charities 97\u003c\/p\u003e \u003cp\u003e(b) 2 Percent Limitation 98\u003c\/p\u003e \u003cp\u003e15.5 Service Provider Publicly Supported Charities 98\u003c\/p\u003e \u003cp\u003e(c) Unusual Grants 98\u003c\/p\u003e \u003cp\u003e15.6 Supporting Organizations 98\u003c\/p\u003e \u003cp\u003e(b) Operational Test 98\u003c\/p\u003e \u003cp\u003e(g) Operated in Connection with (Type III) 99\u003c\/p\u003e \u003cp\u003e(h) Contributions from Controlling Donors 107\u003c\/p\u003e \u003cp\u003e(j) Limitation on Control 108\u003c\/p\u003e \u003cp\u003e(n) Applications and Illustrations 109\u003c\/p\u003e \u003cp\u003e(o) Loss of Supporting Organization Status 111\u003c\/p\u003e \u003cp\u003e15.7 Change of Public Charity Category 112\u003c\/p\u003e \u003cp\u003e(b) From § 509(a)(3) to § 509(a)(1) or § 509(a)(2) 112\u003c\/p\u003e \u003cp\u003e(d) IRS Recognition of Change in Status 112\u003c\/p\u003e \u003cp\u003e15.8 Termination of Public Charity Status 113\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Donor-Advised Funds 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Basic Definitions 116\u003c\/p\u003e \u003cp\u003e16.7 Statutory Criteria 116\u003c\/p\u003e \u003cp\u003e(a) Definition of Donor-Advised Fund 116\u003c\/p\u003e \u003cp\u003e(b) Taxes on Taxable Distributions 125\u003c\/p\u003e \u003cp\u003e(c) Taxes on Prohibited Benefits 130\u003c\/p\u003e \u003cp\u003e(d) Application of Excess Benefit Rules 130\u003c\/p\u003e \u003cp\u003e(e) Application of Excess Business Holdings Rules 131\u003c\/p\u003e \u003cp\u003e(f) Limitations on Deductibility of Contributions 131\u003c\/p\u003e \u003cp\u003e(g) Reporting and Disclosure Requirements 131\u003c\/p\u003e \u003cp\u003e16.8 Studies 131\u003c\/p\u003e \u003cp\u003e(a) Treasury Study 131\u003c\/p\u003e \u003cp\u003e(b) Congressional Research Service Study 131\u003c\/p\u003e \u003cp\u003e16.9 Tax Regulations 132\u003c\/p\u003e \u003cp\u003e(a) The Ever-Pending Regulations Project 132\u003c\/p\u003e \u003cp\u003e(c) Comments on IRS Notice 132\u003c\/p\u003e \u003cp\u003e16.10 Proposed Legislation 132\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Company Foundations 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.4 Private Benefit Doctrine 133\u003c\/p\u003e \u003cp\u003e17.5 Disqualified Persons Rules 133\u003c\/p\u003e \u003cp\u003e17.6 Self-Dealing Rules 134\u003c\/p\u003e \u003cp\u003e(a-1) Satisfying Company Charitable Commitments 134\u003c\/p\u003e \u003cp\u003e(c) Provision of Tangible Benefits 135\u003c\/p\u003e \u003cp\u003e(d) Grantmaking 135\u003c\/p\u003e \u003cp\u003e(e) Incidental and Tenuous Benefits 139\u003c\/p\u003e \u003cp\u003e17.7 Other Private Foundations Rules 141\u003c\/p\u003e \u003cp\u003e(b) Excess Business Holdings Rules 141\u003c\/p\u003e \u003cp\u003e17.8 Excess Executive Compensation Tax Exceptions 141\u003c\/p\u003e \u003cp\u003e(a) Limited Hours Exception 141\u003c\/p\u003e \u003cp\u003e(b) Nonexempt Funds Exception 141\u003c\/p\u003e \u003cp\u003eAbout the Authors 143\u003c\/p\u003e \u003cp\u003eAbout the Online Resources 145\u003c\/p\u003e \u003cp\u003eAppendix A: Sources of the Law 147\u003c\/p\u003e \u003cp\u003eAppendix B: Internal Revenue Code Sections 173\u003c\/p\u003e \u003cp\u003eTable of Cases 179\u003c\/p\u003e \u003cp\u003eTable of IRS Revenue Rulings, Revenue Procedures, and Notices 189\u003c\/p\u003e \u003cp\u003eTable of IRS Private Determinations Cited in Text 197\u003c\/p\u003e \u003cp\u003eTable of Other IRS Private Determinations 213\u003c\/p\u003e \u003cp\u003eIndex 227\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default 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