Private foundations: Indirect self-dealing

An act of self-dealing may be direct or indirect.  An indirect act of self-dealing generally occurs as a transaction between a disqualified person and an organization controlled by a private foundation.

However, certain transactions between a disqualified person and an organization controlled by a private foundation will not be treated as indirect self-dealing:

• Certain business transactions
• Grants to intermediaries
• Transactions during the administration of an estate or revocable trust
• Transactions with certain non-controlled organizations
• Certain transactions involving limited amounts
• Transactions involving disqualified persons, in which a private foundation could itself engage

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