A transaction between a disqualified person and an organization controlled by a private foundation is not indirect self-dealing if: The transaction arose from a business relationship established before the transaction would have been considered an act of self-dealing absent this exception to the self-dealing rules, The transaction was at least as favorable to the organization controlled by the foundation as an arm's length transaction with an unrelated person, and Either the organization controlled by the foundation would have suffered severe economic hardship by engaging in the transaction with someone other than a disqualified person, or because of the unique nature of the product or services provided by the organization controlled by the foundation, the disqualified person could not have engaged in the transaction with anyone else, or could have done so only by incurring severe economic hardship. Return to Life Cycle of a Private Foundation
