For purposes of this title, the term "private foundation" means a domestic or foreign organization described in section 501(c)(3) other than-
from persons other than disqualified persons (as defined in section 4946) with respect to the organization, from governmental units described in section 170(c)(1), or from organizations described in section 170(b)(1)(A) (other than in clauses (vii) and (viii)), and
For purposes of paragraph (3), an organization described in paragraph (2) shall be deemed to include an organization described in section 501(c)(4), (5), or (6) which would be described in paragraph (2) if it were an organization described in section 501(c)(3).
For purposes of this title, if an organization is a private foundation (within the meaning of subsection (a)) on October 9, 1969, or becomes a private foundation on any subsequent date, such organization shall be treated as a private foundation for all periods after October 9, 1969, or after such subsequent date, unless its status as such is terminated under section 507.
For purposes of this part, an organization the status of which as a private foundation is terminated under section 507 shall (except as provided in section 507(b)(2)) be treated as an organization created on the day after the date of such termination.
For purposes of this part and chapter 42, the term "support" includes (but is not limited to)-
Such term does not include any gain from the sale or other disposition of property which would be considered as gain from the sale or exchange of a capital asset, or the value of exemption from any Federal, State, or local tax or any similar benefit.
For purposes of subsection (d), the term "gross investment income" means the gross amount of income from interest, dividends, payments with respect to securities loans (as defined in section 512(a)(5)), rents, and royalties, but not including any such income to the extent included in computing the tax imposed by section 511. Such term shall also include income from sources similar to those in the preceding sentence.
For purposes of subsection (a)(3)(B)(iii), an organization shall not be considered to be operated in connection with any organization described in paragraph (1) or (2) of subsection (a) unless such organization meets the following requirements:
For each taxable year beginning after the date of the enactment of this subsection, the organization provides to each supported organization such information as the Secretary may require to ensure that such organization is responsive to the needs or demands of the supported organization.
The organization is not operated in connection with any supported organization that is not organized in the United States.
If the organization is operated in connection with an organization that is not organized in the United States on the date of the enactment of this subsection, clause (i) shall not apply until the first day of the third taxable year of the organization beginning after the date of the enactment of this subsection.
For purposes of subsection (a)(3)(B), an organization shall not be considered to be-
if such organization accepts any gift or contribution from any person described in subparagraph (B).
A person is described in this subparagraph if, with respect to a supported organization of an organization described in subparagraph (A), such person is-
For purposes of this subsection, the term "supported organization" means, with respect to an organization described in subsection (a)(3), an organization described in paragraph (1) or (2) of subsection (a)-
26 U.S.C. § 509
EDITORIAL NOTES
REFERENCES IN TEXTThe date of the enactment of this subsection, referred to in subsec. (f)(1)(A), (B)(ii), is the date of enactment of Pub. L. 109-280, which was approved Aug. 17, 2006.
CODIFICATIONSections 1221(a)(2) and 1241(a), (b) of Pub. L. 109-280, which directed the amendment of section 509 without specifying the act to be amended, were executed to this section, which is section 509 of the Internal Revenue Code of 1986, to reflect the probable intent of Congress. See 2006 Amendment notes below.
AMENDMENTS2006-Subsec. (a)(3)(B). Pub. L. 109-280, §1241(a), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: "is operated, supervised, or controlled by or in connection with one or more organizations described in paragraph (1) or (2), and". See Codification note above.Subsec. (e). Pub. L. 109-280, §1221(a)(2), inserted at end "Such term shall also include income from sources similar to those in the preceding sentence." See Codification note above. Subsec. (f). Pub. L. 109-280, §1241(b), added subsec. (f). See Codification note above.1978-Subsec. (e). Pub. L. 95-345 inserted provision relating to payments with respect to securities loans.1975-Subsec. (a)(2)(B). Pub. L. 94-81 designated existing provisions as cl. (i) and added cl. (ii).
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109-280, §1221(c), Aug. 17, 2006, 120 Stat. 1089, provided that: "The amendments made by this section [amending this section and section 4940 of this title] shall apply to taxable years beginning after the date of the enactment of this Act [Aug. 17, 2006]." Pub. L. 109-280, §1241(e), Aug. 17, 2006, 120 Stat. 1103, provided that:"(1) IN GENERAL.-The amendments made by subsections (a) and (b) [amending this section] shall take effect on the date of the enactment of this Act [Aug. 17, 2006]."(2) CHARITABLE TRUSTS WHICH ARE TYPE III SUPPORTING ORGANIZATIONS.-Subsection (c) [enacting provisions set out as a note below] shall take effect-"(A) in the case of trusts operated in connection with an organization described in paragraph (1) or (2) of section 509(a) of the Internal Revenue Code of 1986 on the date of the enactment of this Act, on the date that is one year after the date of the enactment of this Act, and"(B) in the case of any other trust, on the date of the enactment of this Act."
EFFECTIVE DATE OF 1978 AMENDMENT Pub. L. 95-345, §2(e), Aug. 15, 1978, 92 Stat. 483, as amended by Pub. L. 99-514, §2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The amendments made by this section [enacting section 1058 of this title and amending sections 509, 512, 514, 851, and 4940 of this title] apply with respect to-"(1) amounts received after December 31, 1976, as payments with respect to securities loans (as defined in section 512(a)(5) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]), and "(2) transfers of securities, under agreements described in section 1058 of such Code, occurring after such date."
EFFECTIVE DATE OF 1975 AMENDMENT Pub. L. 94-81, §3(b), Aug. 9, 1975, 89 Stat. 418, provided that: "The amendment made by this section [amending this section] shall apply to unrelated business taxable income derived from trades and businesses which are acquired by the organization after June 30, 1975."
EFFECTIVE DATESection effective Jan. 1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as a note under section 4940 of this title.
SAVINGS PROVISIONApplicability of subsec. (a) of this section to testamentary trusts, see section 101(l)(7) of Pub. L. 91-172, set out as a note under section 4940 of this title.
CHARITABLE TRUSTS WHICH ARE TYPE III SUPPORTING ORGANIZATIONS Pub. L. 109-280, §1241(c), Aug. 17, 2006, 120 Stat. 1103, provided that: "For purposes of section 509(a)(3)(B)(iii) of the Internal Revenue Code of 1986, an organization which is a trust shall not be considered to be operated in connection with any organization described in paragraph (1) or (2) of section 509(a) of such Code solely because-"(1) it is a charitable trust under State law,"(2) the supported organization (as defined in section 509(f)(3) of such Code) is a beneficiary of such trust, and "(3) the supported organization (as so defined) has the power to enforce the trust and compel an accounting."
PAYOUT REQUIREMENTS FOR TYPE III SUPPORTING ORGANIZATIONS Pub. L. 109-280, §1241(d), Aug. 17, 2006, 120 Stat. 1103, provided that:"(1) IN GENERAL.-The Secretary of the Treasury shall promulgate new regulations under section 509 of the Internal Revenue Code of 1986 on payments required by type III supporting organizations which are not functionally integrated type III supporting organizations. Such regulations shall require such organizations to make distributions of a percentage of either income or assets to supported organizations (as defined in section 509(f)(3) of such Code) in order to ensure that a significant amount is paid to such organizations."(2) TYPE III SUPPORTING ORGANIZATION; FUNCTIONALLY INTEGRATED TYPE III SUPPORTING ORGANIZATION.-For purposes of paragraph (1), the terms 'type III supporting organization' and 'functionally integrated type III supporting organization' have the meanings given such terms under subparagraphs (A) and (B) section 4943(f)(5) of the Internal Revenue Code of 1986 (as added by this Act), respectively."
- Internal Revenue Code of 1986
- The term "Internal Revenue Code of 1986" means this title, and the term "Internal Revenue Code of 1939" means the Internal Revenue Code enacted February 10, 1939, as amended.
- Secretary of the Treasury
- The term "Secretary of the Treasury" means the Secretary of the Treasury, personally, and shall not include any delegate of his.
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- State
- The term "State" shall be construed to include the District of Columbia, where such construction is necessary to carry out provisions of this title.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- trade or business
- The term "trade or business" includes the performance of the functions of a public office.