§4946 Definitions and Special Rules

Summary

Names who counts as a "disqualified person" for a private foundation. It includes: a substantial contributor (see section 507(d)(2)); a foundation manager (officers, directors, trustees, people with similar powers, and employees who had authority over the act in question); anyone who owns more than 20% of voting power, partnership profits, or trust beneficial interest in an entity that is itself a substantial contributor; family members of any of those people; and any corporation, partnership, trust, or estate in which those people own more than 35% (voting power, profits, or beneficial interest). For ownership rules, indirect holdings are counted under section 267(c), but family is treated as defined here. For partnerships and trusts, constructive ownership rules like section 267(c) apply, with family treated as in subsection (d). Only for rules in section 4943, another private foundation can be disqualified if the same people control it or made most of its contributions. Only for section 4941, a "government official" can be disqualified. That term excludes a "special Government employee" (18 U.S.C. 202(a)) and covers specified federal or state offices and certain paid staff, including positions listed in schedule C of Civil Service Rule VI, jobs paid at or above the lowest SES basic rate (section 5382, title 5), House/Senate jobs paid $15,000+, state/local offices paid $20,000+, personal/executive assistants to these, and IRS Oversight Board members. Family means spouse, ancestors, children, grandchildren, great-grandchildren, and the spouses of those descendants.