Program-Related Investments For Foundations Approved By IRS

The Internal Revenue Service (IRS) has announced that a wide array of investments will be able to qualify as program related.  Private foundations will now be able to use a wide variety of financial tools to achieve their charitable goals.  “Last week, the U.S. Treasury Department and the Internal Revenue Service finalized regulations easing the way for private foundations to make program-related investments.”  This article provides important information about how the new regulations will apply.  Private foundations will now be given more options than what they had in the past.  The hope is that these new regulatory announcements will help encourage more charitable giving by making the tax regulations more accommodating.  The public policy goal is to create an incentive for these private foundations to stay in business.

See Michael S. Fischer, IRS Oks Program-Related Investments for Foundation, Think Advisor, April 25, 2016.