Recently, the IRS issued a private letter ruling that heldthat a proposed grant to a charitable trust would not affect the tax-exemptstatus of the foundation. A private non- operating foundation was requesting agrant to a charitable trust. The foundation wanted to create the trust and makea capital bequest to the trust. Additionally, the grant will not create netinvestment income nor will it constitute self-dealing, and will not besomething that will jeopardize an investment.
See Sarah Choi, PLR On Proposed Grant to Charitable Trust, Wealth Strategies Journal, Sept. 3, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
