2016 Tennessee Code
Title 48 - Corporations and Associations
Nonprofit Corporations
Chapter 51 - General Provisions
Part 5 - Private Foundations
§ 48-51-501. Private foundations.

(a) (1) Except when otherwise determined by a court of competent jurisdiction, a corporation which is a "private foundation," as defined in § 509(a) of the Internal Revenue Code of 1986, codified in 26 U.S.C. § 509(a):

(A) Shall distribute such amounts for each taxable year at such time and in such manner as not to subject the corporation to tax under § 4942 of the Code, codified in 26 U.S.C. § 4942;

(B) Shall not engage in any act of self-dealing as defined in § 4941(d) of the Code, codified in 26 U.S.C. § 4941(d);

(C) Shall not retain any excess business holdings as defined in § 4943(c) of the Code, codified in 26 U.S.C. § 4943(c);

(D) Shall not make any taxable expenditures as defined in § 4944 of the Code, codified in 26 U.S.C. § 4944; and

(E) Shall not make any taxable expenditures as defined in § 4945(d) of the Code, codified in 26 U.S.C. § 4945(d).

(2) All references in this section to sections of the Code shall be to such sections of the Internal Revenue Code of 1986, compiled in 26 U.S.C., as amended from time to time, or to corresponding provisions of subsequent internal revenue laws of the United States.

(b) Subsection (a) shall not apply to any corporation to the extent that a court of record having equity jurisdiction shall determine that such application would be contrary to the terms of the charter or other instrument governing such corporation or governing the administration of charitable funds held by it and that the same may not be properly changed to conform to such sections.