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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:

Sale, exchange, or leasing of property,
Leases {but see Leases , under Exceptions to Self-Dealing)
Lending money or other extensions of credit,
Providing goods, services, or facilities,
Paying compensation or reimbursing expenses to a disqualified person,
Transferring foundation income or assets to, or for the use or benefit of, a disqualified person, and
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

Return to Life Cycle of a Private Foundation

Page Last Reviewed or Updated: 2013-04-29