The rules prohibiting self-dealing are contained in Internal Revenue Code Section 4941. They are broad and complex and, unfortunately, they are often counter-intuitive. Being able to recognize when a self-dealing issue may be present is an essential skill for all planned giving professionals. You can help your donors and your organization avoid tax penalties by studying up on disqualified people and prohibited transactions. Jeffrey Davine's presentation at NCPP 2016, “Dealing with the Self-Dealing Rules,” addressed this very issue.
Find out how well you know the self-dealing rules.
Jeffrey Davine is a partner through his professional corporation with Mitchell Silberberg & Knupp LLP. He represents numerous charitable organizations, providing legal counsel to tax-exempt organizations and advising them on a broad range of tax, transactional, corporate, governance, fiduciary, and charitable giving matters. Jeffrey is frequently asked to provide guidance with respect to large, complex, donor contributions. These transactions frequently involve difficult tax and other compliance issues.
Related Resources in CGP Link:
Yikes! Finding and Fixing Self-Dealing
Greg Baker (2012 National Conference on Philanthropic Planning)
Using Charitable Strategies with Family Business Succession Planning
David Libengood (2011 National Conference on Philanthropic Planning)