§4946 Definitions and special rules

Summary

Names who cannot deal with a private foundation because they are too closely tied to it. A “disqualified person” includes: a major donor (see section 507(d)(2)); a foundation officer, director, or trustee (or someone with the same powers); anyone who owns more than 20% of a corporation’s voting power, a partnership’s profits, or a trust’s beneficial interest; family members of those people; and companies, partnerships, or trusts that more than 35% belong to those people or their families. For rules about stock, profits, or beneficial interests, indirect ownership is counted under section 267(c) (for profits/beneficial interests paragraph (3) of 267(c) does not apply), and 267(c)(4) is read as if “family” means the relatives listed below. Two special cases apply only for other sections: another private foundation controlled by the same people or funded mostly by the same donors (relevant to section 4943), and government officials (relevant to section 4941). A “foundation manager” means an officer, director, trustee, or anyone with similar duties, and employees who have authority over a particular act or failure to act. A “government official” (not including a “special Government employee” under 18 U.S.C. 202(a)) is someone holding certain high federal offices or presidential appointments; a position listed in Schedule C of Civil Service Rule VI or paid at or above the lowest Senior Executive Service basic pay under 5 U.S.C. 5382; a House or Senate position paid $15,000 or more a year; a state or local office paid $20,000 or more a year; a personal or executive assistant to any of these; or a member of the IRS Oversight Board. “Family” means spouse, ancestors, children, grandchildren, great-grandchildren, and the spouses of children, grandchildren, and great-grandchildren.