Private foundations are an effective vehicle for individuals and families to make charitable gifts, but they are subject to a strict regulatory regime. The IRS issued Revenue Procedure 2021-40, 2021-38 IRB 1 on Sept. 3, 2021, adding a private foundation issue to the list of those areas on which the IRS will no longer issue private letter rulings or determination letters.

This webinar will function as a basic primer for private foundations and the regulations applicable to them. We will provide insights and guidance on taxes and distributions affecting private foundations as well as discussions on the antiquated self-dealing regulations. We will also cover types of qualifying distributions from program-related investments to grants requiring expenditure responsibility.

Newly enacted proposed legislation affecting private foundations will be discussed by covering the following major topics:

• Excise tax on net investment income & tax on unrelated business income


• Qualifying distributions and redistribution rules


• Penalty situations


• Reading & understanding Form 990-PF


• Other tax forms


• Self-dealing issues 

This is a great opportunity to learn about the fundamentals of private foundations and understand what makes them different from other types of charitable entities. This course is designed to provide you with planning opportunities to ensure the private foundation successfully operates within the regulatory boundaries.
 
Learning Objectives:

• Calculate the net investment income tax and learn certain tax savings strategies


• Identify the common mistakes in preparing a 990PF


• Calculate the minimum distribution requirements and keep private foundations from violating the self-dealing regulations