Source: https://www.bna.com/private-foundations-taxable-expenditures-p7705/
Timestamp: 2019-04-20 12:39:54+00:00

Document:
Tax Management Portfolio No. 474, Private Foundations — Taxable Expenditures (Sec. 4945), discusses in detail the restrictions placed upon the activities of private foundations under §4945.
Tax Management Portfolio No. 474, Private Foundations — Taxable Expenditures (Sec. 4945), discusses in detail the restrictions placed upon the activities of private foundations under §4945. Enacted by the Tax Reform Act of 1969, §4945 imposes an excise tax upon “taxable expenditures” of a private foundation, defined by §4945(d) as including five separate categories of expenditures.
The Portfolio discusses the background of §4945 and outlines the elements of each category of “taxable expenditure.” Taxable expenditures are amounts paid: (1) to attempt to influence legislation; (2) to influence the outcome of a public election or to carry on most voter registration drives; (3) as a grant, with exceptions, to an individual for travel or study; (4) as a grant to certain organizations; and (5) for any noncharitable purpose. The Portfolio also provides guidance in problem areas, including changes made by the Pension Protection Act of 2006, discusses exceptions to the §4945 restrictions, and provides a technical analysis of the first and second-tier excise taxes imposed on foundations and foundation managers for the making of taxable expenditures.
The Worksheets include sample documents to which reference is made in the Portfolio.
For a discussion of the other excise taxes imposed on private foundations, see 470 T.M., Private Foundations — Self-Dealing (Section 4941); 473 T.M., Private Foundations — Excess Business Holdings; 468 T.M., Private Foundations — Section 4940 and Section 4944; and 880 T.M., Private Foundations — Distributions (Sec. 4942). For a discussion of the definition of private foundations and the distinction between private foundations and public charities, see 456 T.M., Private Foundations and Public Charities — Definition and Classification.
This Portfolio should be cited as Sanders, Roady and Berry, 474 T.M., Private Foundations — Taxable Expenditures (Sec. 4945).
Turney P. Berry, B.A. (with honors, 1983) and B.L.S. (with university honors, 1983), Memphis State University; J.D., Vanderbilt University (1986); Adjunct Law Professor, Vanderbilt University (2004 to present); Fellow, American College of Trust and Estate Counsel (Estate and Gift, Charitable Planning and Exempt Organizations and Program committees); Delegate, National Conference of Commissioners on Uniform State Laws (NCCUSL); member, Legal Advisory Subcommittee of the Council on Foundations; author, 840 T.M., Estate Tax Deductions — Sections 2053 and 2054 (with Edward J. Beckwith), and 879 T.M., Private Foundations — Self-Dealing (Section 4941); listed in the publication The Best Lawyers in America; frequent writer and speaker on the local, state, and national levels.
(4) "Due to Reasonable Cause"
1. Grants to Individuals That Qualify Under § 4945(g)(3) by Focusing on a "Specific Objective"
E. Selection of Grantees on an "Objective and Nondiscriminatory Basis"

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