§ 30-4-5-21 — Trusts for benevolent public purpose; general rules

Subject to the provisions of this section and
of section 23 of this chapter, every trust for a benevolent public
purpose that is subject to the provisions of Subchapter A of Chapter 42
of Subtitle D of the Internal Revenue Code shall:
(1) distribute each taxable year amounts sufficient for such trust
to avoid liability for the tax imposed by Section 4942 of the
Internal Revenue Code, except that this subdivision shall not
apply to split-interest trusts;
(2) not engage in any act of self-dealing (as defined in Section
4941(d) of the Internal Revenue Code) which would subject such
trust to liability for the taxes imposed by Section 4941 of the
Internal Revenue Code;
(3) not retain any excess business holding (as defined in Section
4943(c) of the Internal Revenue Code) which would subject such
trust to liability for the taxes imposed by Section 4943 of the
Internal Revenue Code;
(4) not make any investment which would jeopardize the carrying
out of any of such trust's exempt purposes (within the meaning of
Section 4944 of the Internal Revenue Code) and which would
subject such trust to liability for the taxes imposed by Section
4944 of the Internal Revenue Code; and
(5) not make any taxable expenditure (as defined in Section
4945(d) of the Internal Revenue Code) which would subject such
trust to liability for the taxes imposed by Section 4945 of the
Internal Revenue Code.
The provisions of this section shall not apply to split-interest trusts or
amounts thereof to the extent that such split-interest trusts and amounts
are not, under Section 4947 of the Internal Revenue Code, subject to
the prohibitions applicable to private foundations.
Formerly: Acts 1971, P.L.416, SEC.6. As amended by
P.L.2-1987, SEC.48; P.L.41-2000, SEC.6.