16-6a-116 - Private foundations.
16-6a-116. Private foundations.
Except as otherwise specified in the articles of incorporation or as provided by a court ofcompetent jurisdiction, a nonprofit corporation that is a private foundation as defined in Section509(a), Internal Revenue Code:
(1) shall make distributions for each taxable year at the time and in the manner as not tosubject the nonprofit corporation to tax under Section 4942, Internal Revenue Code;
(2) may not engage in any act of self-dealing as defined in Section 4941(d), InternalRevenue Code;
(3) may not retain any excess business holdings as defined in Section 4943(c), InternalRevenue Code;
(4) may not make any investments that would subject the nonprofit corporation totaxation under Section 4944, Internal Revenue Code; and
(5) may not make any taxable expenditures as defined in Section 4945(d), InternalRevenue Code.
Amended by Chapter 197, 2002 General Session