Acts of self-dealing by private foundation

The following transactions are generally considered acts of self-dealing between a private foundation and a disqualified person:

1. Sale, exchange, or leasing of property,
2. Leases (but see Certain Leases, under Exceptions to Self-Dealing)
3. Lending money or other extensions of credit,
4. Providing goods, services, or facilities,
5. Paying compensation or reimbursing expenses to a disqualified person,
6. Transferring foundation income or assets to, or for the use or benefit of, a disqualified person, and
7. Certain agreements to make payments of money or property to government officials.

In addition, the law prohibits indirect self-dealing. Thus, transactions between organizations controlled by a private foundation may also be taxable self-dealing.

Additional information

• Exceptions to self-dealing
• Transitional rules
• Number of self-dealing acts

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