Tax Considerations for Double Bottom Line Investing, Part I
Author: Jeffrey A. Zaluda.; Brian H. Axelrad.; Chelsey E. Ziegler.
Source: Volume 32, Number 01, Fall 2014 , pp.31-42(12)
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Abstract:
The recent and growing attention paid by philanthropists and investors to “social impact” investment exists within a complex federal tax environment. As private foundations remain a favored vehicle for these philanthropists and investors to participate in the social impact sector, compliance with IRS regulations applicable to foundations is an important consideration. This article outlines six critical tax regulations foundations must be aware of with respect to program-related investments and highlights key factors to keep in mind in order to avoid penalties and take advantage of certain available benefits.Keywords: program-related investment; social impact; foundations; 5% percent rule; self-dealing; expenditure responsibility
Affiliations:
1: Horwood Marcus & Berk Chartered; 2: Horwood Marcus & Berk Chartered; 3: Horwood Marcus & Berk Chartered.