Private foundations are subject to self-dealing rules that can be difficult to navigate. The difficulties arise in part because the self-dealing rules can be violated by transactions that provide a benefit to the foundation. Further, self-dealing transactions can occur even when there is not a direct transaction between the foundation and a related party. Reynolds T. Cafferata and Andrew S. Atkin wrote an article setting forth the self-dealing rules and describing how to handle a number of situations that foundations face that could result in a violation of the self-dealing rules.
The above article appeared in ALI CLE’s The Practical Tax Lawyer. You can visit ALI CLE’s website here www.ali-cle.org