Private foundations
Sec. 18. Subject to section 20 of this chapter, every corporation
which is organized under the laws of this state and which is a private
foundation as defined in Section 509(a) of the Internal Revenue Code
shall, unless otherwise provided in the articles of incorporation of
such corporation:
(a) distribute each taxable year amounts sufficient for such
corporation to avoid liability for the tax imposed by Section
4942 of the Internal Revenue Code;
(b) not engage in any act of self-dealing (as defined in Section
4941(d) of the Internal Revenue Code) which would subject
such corporation to liability for the taxes imposed by Section
4941 of the Internal Revenue Code;
(c) not retain any excess business holding (as defined in Section
4943(c) of the Internal Revenue Code) which would subject
such corporation to liability for the taxes imposed by Section
4943 of the Internal Revenue Code;
(d) not make any investment which would jeopardize the
carrying out of any of such corporation's exempt purposes
(within the meaning of Section 4944 of the Internal Revenue
Code) and which would subject such corporation to liability for
the taxes imposed by Section 4944 of the Internal Revenue
Code; and
(e) not make any taxable expenditure (as defined in Section
4945(d) of the Internal Revenue Code) which would subject
such corporation to liability for the taxes imposed by Section
4945 of the Internal Revenue Code.
(Formerly: Acts 1971, P.L.416, SEC.6.) As amended by P.L.2-1987,
SEC.47.
Last modified: May 27, 2006