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What happens if an organization is reclassified as a private foundation?

April 26, 2017foundation happens organization private reclassified

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What happens if an organization is reclassified as a private foundation?

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The organization is still exempt as a 501(c)(3) organization, but it will be subject to the excise taxes that apply to private foundations. It will also file a Form 990-PF, Return of Private Foundation, instead of a Form 990, Return of Organization Exempt from Income Tax.