CPE Self-Study

Private Foundations: Understanding the Requirements and Tax Implications

  • $135.00-$169.00
    Private Foundations: Understanding the Requirements and Tax Implications In Stock Product #: 745192
    AICPA Member: $135.00
    Non-Member: $169.00
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Private foundations are becoming a common way to fund and distribute wealth to organizations. However, there are pitfalls lurking for foundations not meeting the specific requirements of the Code that may result in disqualification, taxes, or penalties. This CPE course lays out processes for creating, operating, and funding private foundations to avoid these unintended consequences.

Topics Discussed

  • Organization and operational requirements
  • Private operating foundations and termination of foundation status
  • Initial excise tax – Section 4940
  • Self-dealing – Section 4941
  • Failure to distribute – Section 4942
  • Excess business holdings – Section 4943
  • Jeopardizing investments – Section 4944
  • Taxable expenditures – Section 4945
  • Alternative investments
  • Tax Filing requirements and related forms

Learning Objectives

When you complete this course, you will be able to:

  • Advise high wealth families and organizations desiring to establish a charitable giving program for family members
  • Guide private foundations in their operations to help them avoid unintended taxes and penalties
  • Identify appropriate tax forms and compliance requirements for the private foundation

Who Will Benefit?

  • CPAs, family office members, and accountants employed by and/or advising high wealth families

Prerequisite: Basic understanding of not-for-profit organizations

Advanced Preparation: None

Not-for-Profit Section Members Save an Additional 20%!

When you log into this website with your AICPA member user account, the section/credential discount will be automatically applied during checkout. Should you have any questions or encounter any issues, please contact the AICPA Service Center at 888-777-7077 or service@aicpa.org.

Find out more information on the NFP Section.

About the Authors

Brian Yacker, CPA/JD

Huntington Beach, CA

Brian has over 22 years of tax, legal, and accounting experience in the exempt organizations area. Areas of exempt organization consultation which Brian possesses expertise include public support test calculations and planning, preparation of reasonable compensation rebuttable presumption binders and Reasonable Compensation Studies, governance best practices consultation, recommendations regarding effective Bylaws, conducting of EO Governance Check-Ups, compliance with the §501(h) lobbying safe harbor, proper functional expense allocations, maximizing charity watchdog ratings, preparation of federal and state Tax Exemption Applications, conducting of unrelated business income revenue stream studies, preparing state charitable solicitation registrations and the proper internal and external reporting of special event fundraisers.

Brian is currently an adjunct professor for the University of California Irvine, teaching the Nonprofit Accounting course in the Master of Professional Accountancy program. Additionally, Brian serves on the Board of Directors for the Long Beach Nonprofit Partnership (for which he is the Treasurer). Finally, Brian serves on the AICPA EO Tax Technical Resource Panel and the AICPA Nonprofit Advisory Committee.

Brian earned his Bachelors degree in Finance/Marketing from the University of Virginia and his Juris Doctor from the Indiana University School of Law (Bloomington). Personal interests include hiking and camping, sports memorabilia collecting, playing fantasy sports, Asian cooking, and spending time with his wife, two daughters and son.

Lauren Haverlock, CPA, MST

Los Angeles, CA

Lauren Haverlock is a principal in charge of the nonprofit tax practice at Green Hasson Janks, a Los Angeles based CPA Firm. Having focused exclusively in the nonprofit tax area for most of her career, Lauren's background is in preparing, reviewing and consulting on federal and state returns for public charities, private foundations and other exempt organizations. She consults with organizations large and small on matter such as formation and dissolution, federal and state compliance, lobbying, unrelated business income, governance best practices, fundraising and related party reporting. She has served as an outsourced controller and accounting department for many exempt organizations, assisting with implementing controls and accounting procedures for exempt entities.

Beyond the formation of a corporation and the completion of exemption applications and state registrations, Lauren truly enjoys helping an entity in the formulation of their management, policy and operations. She is passionate about her clients' missions and in helping new organizations implement a strong infrastructure so those within the organization are freed to focus on the growth of their program services.

She cares deeply about her community and is currently a board member of the Downtown Long Beach Associates and the Fender Music Foundation. She also sits as Treasurer for the Promenade Area Residents Association, a 501(c) (3) public charity that has recently raised money to build a park in downtown Long Beach. In addition to community involvement, she teaches Form 990 and 990-PF courses for the AICPA and has taught at the CalCPA and other prominent state societies in the past. Lauren co-authored the private foundations tax course for the AICPA in 2013.

Lauren earned her bachelor's degree in Accounting from California State University, Long Beach where she received a full academic scholarship through the President's Scholar Program. After obtaining her CPA license, she got her masters in Science, Taxation at the University of Southern California.

Lauren earned her bachelor's degree in Accounting from California State University, Long Beach where she received a full academic scholarship through the President's Scholar Program. After obtaining her CPA license, she got her masters in Science, Taxation at the University of Southern California.

About the Publisher


About the AICPA The American Institute of CPAs is the world’s largest member association representing the accounting profession, with more than 412,000 members in 144 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialty credentials for CPAs who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. Through a joint venture with the Chartered Institute of Management Accountants, it has established the Chartered Global Management Accountant designation, which sets a new standard for global recognition of management accounting.

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