Can a Private Foundation Share Office Space, Employees, and Other Resources With a Related Business?

Can a Private Foundation Share Office Space, Employees, and Other Resources With a Related Business?

Private foundations may share office space, equipment, employees, and other resources with related businesses, but these arrangements must be structured carefully to comply with the self-dealing rules.

Can you donate to a newly formed private foundation when its application for tax-exempt status is still pending?

Private foundations can generally receive donations while their IRS tax-exemption applications are still pending, but deductibility is not certain until the IRS approves the application.

Is a private foundation permitted to make a grant to another private foundation?

A private foundation is generally permitted to make a grant to another private foundation, but the compliance expectations depend on the recipient: grants to private operating foundations are usually more straightforward, while grants to non-operating private foundations typically require added structure and oversight (often expenditure responsibility).

The CPA KPA 2025 Tax Planning Guide for Private Foundations

Because Form 990-PF is complex, it’s easy for private foundations to make mistakes—and even minor errors can lead to compliance challenges or affect public perception. A careful, well-documented review process helps ensure accuracy and reinforces the foundation’s commitment to sound stewardship.

What Are the Most Common 990-PF Filing Mistakes—and How Can You Avoid Them?

Private foundations can easily make mistakes on Form 990-PF, and those errors can lead to problems with compliance and public perception. Careful preparation and review help private foundations avoid trouble and demonstrate sound stewardship.

What Happens If a Private Foundation Misses Its 5% Distribution? (and how to fix it)

Private foundations must meet annual distribution requirements, and failure to do so can result in significant penalties. When shortfalls occur, they can typically be remedied by making additional grants and properly counting other qualifying expenses.