Private foundation gives to Peace Action

[HiHo]

Contributions to Peace Action are non-deductible. "Because of our effective lobbying work to change our government's policies relating to war, building nuclear weapons and wasteful Pentagon spending, contributions to Peace Action are not tax-deductible."

If a private foundation makes a distribution to Peace Action, will that disqualify its exemption status? Or is the contribution simply non-deductible?

[Bees Knees]

Private foundations are required to distribute their earnings to a charitable organization, or face a 15% excise tax on the amount not distributed [IRC Section 4942(a)]. Continued disregard of the rules could result in losing its status as a private foundation, and regular C corporation tax rules would then apply.