Disqualified individual: Exempt operating foundation

Disqualified individual, for purposes of the requirements regarding composition of the gov­erning body and officers of an exempt operating foundation, means any of the following:

1. A substantial contributor,
2. An owner of more than 20 percent of--
   • The total combined voting power of a corporation,
   • The profits interest of a partnership, or
   • The beneficial interest of a trust or unin­corporated enterprise, which is a sub­stantial contributor to the foundation, or
3. A member of the family of any individual described in (1) or (2).

Indirect ownership of stock in a corporation, profits interest in a partnership, or beneficial interest in a trust or unincorporated enterprise is taken into account for determining a disqualified individual under (2) above, according to the rules explained under Attribution of ownership.

Return to Life cycle of a private foundation