! your organizing document contains specific provisions

CAUTION required by section 508(e). These specific provisions

require that you operate to avoid liability for excise taxes under sections 4941(d) (acts of self-dealing), 4942 (undistributed income), 4943(c) (excess business holdings), 4944 (jeopardizing investments), and 4945(d) (taxable expenditures).

You can find sample provisions that satisfy the section 508(e) requirements in chapter 3 of Pub. 557.

You can include provisions that satisfy the requirement

TIP under section 508(e) even if you are not a private

foundation, and even if state law provisions satisfy section 508(e) requirements.

Step 4. Treating family members as one contributor, and any business entity and an individual who controls it as one contributor, identify the contributors who are disqualified persons. Then, calculate the total of contributions received from disqualified persons, regardless of amount.

Step 5. Identify any disqualified persons from whom you received exempt-activity revenues of any amount. Then, calculate the total of exempt-activity revenues received from disqualified persons.

Step 6. Identify the payers other than disqualified persons from whom you received exempt-activity revenues in any year that exceed the greater of 1% of your 509(a)(2) total support

Form 1023-EZ Instructions 11

Operation of state law. Some states have enacted statutory provisions that satisfy the requirements of section 508(e). See Appendix B in the Instructions for Form 1023 . If you are organized in a state that has statutory provisions addressing the requirements of section 508(e), and if you wish to rely on your state law provisions instead of including the provisions in your organizing document, you should be certain that you know what the specific provisions are and where to find them. Reliance on state law to satisfy the rules under section 508(e) is explained in Rev. Rul. 2024-10, 2024-22 I.R.B. 1240.

Note. By checking Line 3, you are attesting that either your organizing document contains the appropriate provisions or that the requirement is satisfied by operation of state law.

As a private foundation you are subject to all of the private foundation rules, not just the specific provisions listed in section 508(e). You can find information about the private foundation rules and the excise taxes that may be imposed for violations of the rules in Pub. 4221-PF, Compliance Guide for 501(c)(3) Private Foundations, and at IRS.gov/Charities-&-Non-Profits/ Private-Foundations/Private-Foundation-Excise-Taxes .

Special foundations-rule procedure for grants to individu- als for travel or study. Private foundations are required to obtain advance approval from the IRS before making grants to individuals for travel, study, or similar purposes. Failure to do so will result in excise taxes under section 4945. Under section 4945, the excise tax does not apply to an individual grant awarded on an objective and nondiscriminatory basis pursuant to a procedure approved by the IRS in advance. Additional information regarding these rules is available at IRS.gov/ Charities-&-Non-Profits/Private-Foundations/Grants-to- Individuals .

To request advance approval of grantmaking procedures under section 4945(g), you must complete and submit Form 8940. A user fee must accompany the form. The advance approval request should be sent to the address indicated on Form 8940. It cannot be submitted with Form 1023-EZ. Additional information about advance approval of individual grant procedures is available at IRS.gov/Charities- &-Non-Profits/ Private-Foundations/Advance-Approval-of-Grant-Making- Procedures . Alternatively, if you do not wish to submit a Form 1023-EZ and a Form 8940, private foundations required to obtain advance approval may complete Form 1023 instead.