Why can’t our family business rent space to our foundation at below market rates?

Although it may seem counterintuitive, a family business renting space to the family’s private foundation, even at below market rates, is considered an act of self-dealing, unless the space is leased to the foundation for free.

Self-dealing involves a complicated set of rules to prevent most transactions between private foundations and their insiders, known as “disqualified persons.”

Read more in the Exponent Philanthropy publication How to Avoid Self-Dealing.

More resources on self-dealing >>

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