Private Foundations: Understanding the Requirements and Tax Implications
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.
- 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
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
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Find out more information on the NFP Section.
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