Life Cycle of a Private Foundation

During its existence, a private foundation has numerous interactions with the IRS – from filing an application for recognition of tax-exempt status, to filing required annual information returns, to making changes in its mission and purpose. The IRS provides information, explanations, guides, forms, and publications on these subjects – they are available through this IRS website. The illustration below provides an easy-to-use way of linking to the documents most foundations will need as they proceed through the phases of their “life cycle.” You can also view a graphical depictionPDF of the chart, with links to our website.

Starting Out

• Types of Foundations
  • Private Operating Foundations
  • Exempt Operating Foundations
  • Grant-Making Foundations
• Organizing Documents
  • Required Provisions
  • Sample Organizing Documents
• Bylaws
  • Annual Accounting Period
  • State Law Requirements
• Employer Identification Number
  • Application FormPDF
  • InstructionsPDF
  • On-Line EIN Application
• Charitable Registration and Solicitation
  • Initial State Registration
  • Periodic State Reporting
  • State Charity Offices
• Help from the IRS

Applying to IRS

• Requirements for Exemption – 501(c)(3) Organizations
• Application Forms
  • Exemption Application
  • User Fee
  • Power of Attorney
  • Disclosure of Applications
• Help from the IRS
  • Application Process Step by Step
  • Customer Account Services
  • Publication 4220, Applying for 501(c)(3) Tax-Exempt StatusPDF
  • Publication 557, Tax-Exempt Status for Your OrganizationPDF
• IRS Processing
  • While You Wait
  • Rulings and Determination Letters

Required Filings

• Annual Exempt Organization Return
  • Requirements for Filing
  • Power of Attorney
• Unrelated Business Income Tax
  • Requirements for filing
    • Form 990-TPDF
    • Form 990-T instructionsPDF
    • Estimated tax
    • Form 990-WPDF
  • Exceptions and Exclusions
  • Publication 598, Tax on Unrelated Business Income of Exempt OrganizationsPDF
• Employment Taxes
  • Requirement to Pay
  • Exceptions and Exclusions
  • Worker Classification
  • Forms and Publications
• Help from the IRS
  • Customer Account Services
  • Publication 4221-PF, Compliance Guide for 501(c)(3) Private FoundationsPDF
  • Publication 557, Tax-Exempt Status for Your OrganizationPDF

Ongoing Compliance

• Jeopardizing Exemption
  • Inurement/Private Benefit
  • Lobbying/Political Activity
  • Not Filing Annual Return
• Private Foundation Excise Taxes
  • Tax on Net Investment Income
  • Self-Dealing
  • Failure to Distribute Income
  • Excess Business Holdings
  • Jeopardizing Investments
  • Taxable Expenditures
• Substantiation and Disclosure of Charitable Contributions
  • Charitable Contributions
    • Publication 1771, Charitable Contributions – Substantiation and Disclosure RequirementsPDF
    • Written Acknowledgements
    • Quid Pro Quo Contributions
    • Charity Auctions
  • Noncash Contributions
    • Donor (Form 8283PDF)
    • Donee (Form 8282PDF)
    • Publication 561, Determining the Value of Donated PropertyPDF
• Public Disclosure Requirements
• Retirement Plan Information for Exempt Organizations
• Help from the IRS
  • Customer Account Services
  • Publication 4221-PF, Compliance Guide for 501(c)(3) Private FoundationsPDF
  • Publication 557, Tax-Exempt Status for Your OrganizationPDF

Significant Events

• Reporting Changes to IRS
• Private Letter Rulings and Determination Letters
• IRS Audits
  • Potential Examination Consequences
  • Examination Procedures
  • Power of Attorney
  Termination of Private Foundation
  • Private Foundation Termination Procedures
• Help from the IRS