§4946 Definitions and Special Rules

Summary

Defines who counts as a "disqualified person" for a private foundation and explains a few related terms. A disqualified person includes a substantial contributor, a foundation manager, anyone who owns more than 20 percent of a corporation’s voting power or more than 20 percent of a partnership’s profits interest or a trust’s beneficial interest, family members of those people, and any corporation, partnership, trust, or estate where those people own more than 35 percent. For some rules it also covers a different private foundation controlled by the same people or funded mostly by the same donors, and for self‑dealing rules it can include a government official. “Substantial contributor” is defined in section 507(d)(2). A “foundation manager” means officers, directors, trustees, people with similar powers, and employees who have authority over the act in question. “Government official” covers certain federal, state, and local elected or appointed offices (including some civil service positions and jobs paid at or above the lowest Senior Executive Service rate), House or Senate positions paid $15,000 or more, state/local offices paid $20,000 or more, assistants to those officials, and members of the IRS Oversight Board (excluding “special Government employees”). Family means spouse, ancestors, children, grandchildren, great‑grandchildren, and the spouses of children, grandchildren, and great‑grandchildren. Indirect or constructive ownership is counted under the rules of section 267(c), with family treated as defined above.