Federal tax law prohibits nonprofit organizations from providing private inurement and unwarranted private benefit. Failure to comply with these basic rules jeopardizes an organization’s tax-exempt status. Layered on top of these general rules, private foundations, which are typically controlled and funded by a single family or a corporation, are subject to special rules designed to prohibit a variety of transactions between the foundation and its insiders. Congress enacted measures to prohibit...
By: McGuireWoods LLP
By: McGuireWoods LLP