§ 30-4-5-18 — Private foundations

Subject to section 20 of this chapter, every
corporation which is organized under the laws of this state and which
is a private foundation as defined in Section 509(a) of the Internal
Revenue Code shall, unless otherwise provided in the articles of
incorporation of such corporation:
(a) distribute each taxable year amounts sufficient for such
corporation to avoid liability for the tax imposed by Section 4942
of the Internal Revenue Code;
(b) not engage in any act of self-dealing (as defined in Section
4941(d) of the Internal Revenue Code) which would subject such
corporation to liability for the taxes imposed by Section 4941 of
the Internal Revenue Code;
(c) not retain any excess business holding (as defined in Section
4943(c) of the Internal Revenue Code) which would subject such
corporation to liability for the taxes imposed by Section 4943 of
the Internal Revenue Code;
(d) not make any investment which would jeopardize the carrying
out of any of such corporation's exempt purposes (within the
meaning of Section 4944 of the Internal Revenue Code) and
which would subject such corporation to liability for the taxes
imposed by Section 4944 of the Internal Revenue Code; and
(e) not make any taxable expenditure (as defined in Section
4945(d) of the Internal Revenue Code) which would subject such
corporation to liability for the taxes imposed by Section 4945 of
the Internal Revenue Code.
Formerly: Acts 1971, P.L.416, SEC.6. As amended by
P.L.2-1987, SEC.47.