If, but for an error in the valuation of property, a transaction would not have been an act of self-dealing had the foundation received fair market value, a correction of the transaction means that the foundation is paid an amount equal to the excess of the fair market value of the property transferred over the amount that the foundation received for the property (assuming a good faith effort to determine fair market value). In addition, the foundation must receive the amount necessary to compensate it for the loss of the use of the money or other property during the period beginning on the date of the act of self-dealing and ending on the date the transaction is corrected. Return to life cycle of a private foundation
