The deductibility of grants or contributions to an operating foundation will not be affected until notice of a change in the status of such an organization is made to the public (such as by publication in the Internal Revenue Bulletin) unless: The contribution was made after the contributor acquired knowledge that the Service would remove the foundation from classification as an operating foundation, or The contribution was made after an act or failure to act which caused the inability to satisfy the tests for qualification as an operating foundation, and the contributor was responsible for, or was aware of, the act or failure to act. A contributor will not be considered responsible for, or aware of, the act or failure to act if the contributor made the contribution relying on a written statement by the foundation that the contribution would not result in the inability to qualify as an operating foundation. This statement must be signed by a foundation manager and must give enough facts concerning the operations and support of the organization to assure a reasonably prudent person that a contribution would not result in disqualification as an operating foundation. Return to Life Cycle of a Private Foundation
