IRS Provides Guidance on PRIs

May 10, 2012 Posted by The Law Firm for Non-Profits, P.C. in IRS, News

If you are a leader of a private foundation that engages in program-related investments (PRIs) and you find yourself constantly confused about the rules, you are not alone. To provide some much-needed relief, the IRS proposes publishing 9 new examples of acceptable PRIs. If your private foundation does not offer PRIs, the new regulations may also make it easier to start.

Existing examples of PRIs focus on domestic situations involving economically disadvantaged individuals and deteriorated urban areas. The IRS realizes that these examples are not broad enough to cover the many situations in which a private foundation may want to invest.

New examples proposed by the IRS illustrate that PRIs are not limited to the aforementioned situations, and they also make it clear that an investment funding activities in a foreign country may qualify as a PRI. The proposal also may clarify how private foundations could invest in certain hybrid corporations and other social enterprises.

If you have comments or want to request a public hearing, the IRS wants to hear from you by July 18, 2012. Check here for addresses and other contact info.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Casey Summar, Partner, The Law Firm for Non-Profits, 4705 Laurel Canyon Blvd, #306, Studio City, CA 91607

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