Tax Warrior Chronicles

Rogue One: A Single Tax on Foundation Investment Income Story

Posted on Wed, Jan 22, 2020

By: Keisha Price, CPA, MST


A Long Time Ago in a Tax System Far, Far, Away…Private Foundations were subject to a 2% tax on net investment income generated from the Foundation’s charitable assets. This 2% tax could be reduced to 1% if the foundation’s current year charitable distributions exceeded its average charitable distributions over the prior five years…until now!


Makes Sense Right?

Well yes! It makes sense for a foundation with a clear charitable purpose, effective directorship, and meaningful assets to give more for the greater good of the galaxy each year and that deserves a tax break.


Constructing the Death Star

Let’s say the good and benevolent founder of the foundation

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Impact Investing and Program-Related Investments:  The Impact on Private Foundation Excise Taxes

Posted on Tue, Nov 20, 2018

By: Rachel M. Kieser, CPA, MT


Over the past few years, you may have heard the term “impact investing” used more frequently in financial- and tax-planning circles.  Impact investors provide funding to for-profit ventures that support social or environmental causes but also produce financial returns.  Individual investors and private foundations alike have been increasingly turning to impact investing to further their missions and make a difference in their communities and beyond.  But, how does this effect private foundations looking to invest?


When private foundations are looking to make impact  investments, it is important to consider both the possible excise tax consequences of the

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