§ 55A-1-50. Private Foundations. - North Carolina Statutes

Part 5. Private Foundations.

§ 55A‑1‑50. Private Foundations.

Except where otherwisedetermined by a court of competent jurisdiction, a corporation that is aprivate foundation as defined in section 509(a) of the Internal Revenue Code of1986:

(1)        Shall distributesuch amounts for each taxable year at such time and in such manner as not tosubject the corporation to tax under section 4942 of the Code.

(2)        Shall not engage inany act of self‑dealing as defined in section 4941(d) of the Code.

(3)        Shall not retain anyexcess business holdings as defined in section 4943(c) of the Code.

(4)        Shall not make anyinvestments in such manner as to subject the corporation to tax under section4944 of the Code.

(5)        Shall not make anytaxable expenditures as defined in section 4945(d) of the Code.

All references in this sectionto sections of the Code shall be to sections of the Internal Revenue Code of1986 as amended from time to time, or to corresponding provisions of subsequentinternal revenue laws of the United States. (1955, c. 1230; 1957, c. 783,s. 7; 1969, c. 875, s. 4; 1971, c. 1136, s. 1; 1977, c. 236, s. 1, c. 663;1979, c. 1027; 1985, c. 505; 1985 (Reg. Sess., 1986), c. 801, ss. 8‑14;1993, c. 398, s. 1.)