Disqualified persons

For the rules relating to private foundation excise taxes, the following persons are considered disqualified persons with respect to a private foundation:

1. All substantial contributors to the founda­tion.
    
2. All foundation managers of the foundation.
    
3. 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, during the ownership) a substantial contributor to the foundation.
      
4. A member of the family of any of the individuals described in 1, 2, or 3.
    
5. A corporation of which more than 35 percent of the total combined voting power is owned by persons described in 1, 2, 3, or 4.
    
6. A partnership of which more than 35 percent of the profits interest is owned by persons described in 1, 2, 3, or 4.
    
7. A trust, estate, or unincorporated enter­prise of which more than 35 percent of the bene­ficial interest is owned by persons described in 1, 2, 3, or 4.
    
8. For purposes of the tax on excess business holdings only, another.
    
9. Private foundation that either --
   • is effectively controlled, directly or indi­rectly, by the same person or persons who control the private foundation in question, or
   • receives substantially all of its contribu­tions, directly or indirectly, from the same persons described in 1, 2, or 3 or members of their families, who made, directly or indirectly, substantially all the contributions to the private foun­dation in question.
      
10. For purposes of the tax on self-dealing only, a government offi­cial.

Indirect owner­ship of stock in a corporation, profits interest in a partnership, or beneficial interest in a trust, es­tate, or unincorporated enterprise is taken into account for determining whether:

• The stockholdings, or profits or beneficial interest, amount to more than 20 percent of the total combined voting power of the corpo­ration or more than 20 percent of the profits or beneficial interests, or
• More than 35 percent of the total combined vot­ing power of the corporation or more than 35 percent of the profits or beneficial interests are owned by persons described in cate­gories 1, 2, 3, or 4.

See Attribution of ownership for more information on indirect ownership rules.

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