North Carolina § 55A-1-50 - Private foundations.

§ 55A-1-50. Private foundations.

Except where otherwise determined by a court of competent jurisdiction, a corporation that is a private foundation as defined in section 509(a) of the Internal Revenue Code of 1986: Shall distribute such amounts for each taxable year at such time and in such manner as not to subject the corporation to tax under section 4942 of the Code. Shall not engage in any act of self-dealing as defined in section 4941(d) of the Code. Shall not retain any excess business holdings as defined in section 4943(c) of the Code. Shall not make any investments in such manner as to subject the corporation to tax under section 4944 of the Code. Shall not make any taxable expenditures as defined in section 4945(d) of the Code. All references in this section to sections of the Code shall be to sections of the Internal Revenue Code of 1986 as amended from time to time, or to corresponding provisions of subsequent internal revenue laws of the United States. History (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.) NORTH CAROLINA COMMENTARY This section is substantially the same as former G.S. 55A-15(c). It is applicable to nonprofit corporations that are private foundations, as defined in Section 509(a) of the Internal Revenue Code, and is intended to comply with Section 1.508-3(d) of the Income Tax Regulations, which provides that a private foundation's governing instrument is deemed to conform with the requirements of Section 508(e) of the Code if valid provisions of state law require the foundation to comply with the requirements and prohibitions described in Section 508(e)(1) of the Code. Legal Periodicals. - For survey of 1977 law on business associations, see 56 N.C.L. Rev. 939 (1977). For article, "Legal Aspects of Changing University Investment Strategies," see 58 N.C.L. Rev. 189 (1980).