43. Private foundations. (a) Except as otherwise provided in subsection (b) of this section, a nonprofit corporation that is a private foundation as defined in section 509(a) of the Internal Revenue Code of 1986, approved December 30, 1969 (83 Stat. 496; 26 U.S.C. § 509(a)) ('Internal Revenue Code'), shall: (1) Distribute such amounts for each taxable year at such time and in such manner as not to subject the corporation to tax under section 4942 of the Internal Revenue Code; (2) Not engage in any act of self-dealing as defined in section 4941(d) of the Internal Revenue Code; (3) Not retain any excess business holdings as defined in section 4943(c) of the Internal Revenue Code; (4) Not make any investments in such manner as to subject the corporation to tax under section 4944 of the Internal Revenue Code; and (5) Not make any taxable expenditures as defined in section 4945(d) of the Internal Revenue Code. (b) Subsection (a) of this section shall not apply to a nonprofit corporation incorporated before January 1, 1970 that has been properly relieved from the requirements of section 508(e)(1) of the Internal Revenue Code by a timely judicial proceeding. (July 2, 2011, D.C.
ration incorporated before January 1, 1970 that has been properly relieved from the requirements of section 508(e)(1) of the Internal Revenue Code by a timely judicial proceeding. (July 2, 2011, D.C. Law 18-378, § 2, 58 DCR 1720; Mar. 5, 2013, D.C. Law 19-210, § 2(d)(10), 59 DCR 13171.) Effect of Amendments The 2013 amendment by D.C. Law 19-210 substituted '1986' for '2986' in (a). Editor's Notes Application of Law 19-210: Section 7 of D.C. Law 19-210 provided that the act shall apply as of January 1, 2012.District of Columbia Legal Code