A couple of days ago President Trump signed into law the Bipartisan Budget Act of 2018. One of the changes implemented by this Act is the “Newman’s Own” exception to the private foundation excess business holdings rule. This exception allows business owners to make a charitable contribution of 100% of a business to their private foundation, and keep the business there intact. The business is then required to distribute all of its profits to the private foundation, as well as meet certain other requirements. For business owners interested in converting a company to a social enterprise, this could be a good planning opportunity.
Note that this Newman’s Own exception does not apply to Donor Advised Funds.
Paul Streckfus’ EO Tax Journal. Email Update 2018-38 (Thursday, February 22, 2018).
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