Exempt Organizations Technical Guide›TG 62: Excise Taxes on Taxable Expenditures – IRC Section 4945›Table of Contents
E.3. Grants to Public Organizations Should Not Be Earmarked for Prohibited Activities
Publication 5590 — Exempt Organizations Technical Guide TG 62: Excise Taxes on Taxable Expenditures under IRC 4945 · 2026-10-03 edition · updated 2026-10-04 · United States
(1) A grant made to a public organization that is described in Section 509(a)(1), (2),
or is not a taxable expenditure under Section 4945(d) if the following requirements are met:
a. The grant is not earmarked to be used for any activities described in Sections
4945(d)(2) or (d)(5), or that violates Sections 4945(d)(3) or (d)(4); and
b. An oral or written agreement does not exist whereby the private foundation
may cause the public organization to engage in the prohibited activities. See Treas. Reg. 53.4945-2(a)(5).
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