What does the Pension Protection Act of 2006 require grantmakers to do?
The Pension Protection Act (PPA) created a new nomenclature to clarify the types of supporting organizations, including: Type I, Type II, Type III, and Functionally integrated Type III organizations. The PPA added three provisions to the tax code that impose excise taxes on sponsors of donor-advised funds and on private foundations for distributions to supporting organizations under certain circumstances. To avoid the excise tax, private foundations and sponsors of donor-advised funds must determine whether potential recipients of grants and contributions are supporting organizations under section 509(a)(3). If the potential recipient is a supporting organization, then the grantor must determine what “type” the grantee is. IRS Notice 2006-109 provides that a grantor “may rely on information from the IRS Business Master File or the grantee’s current IRS letter recognizing the grantee as exempt from federal income tax and indicating the grantee’s public charity classification in determin
Related Questions
- Is it only employees that join an organisation after the commencement of the pension reform act that can elect to opt out of a closed PFA?
- What happens to an employee retirement benefits that is already under a pension scheme before the commencement of the Act?
- What does the Pension Protection Act of 2006 require grantmakers to do?
