What does private foundation mean on the CPA exam?
Private foundation. A tax-exempt organization funded from one source rather than from the public. It faces excise taxes and distribution requirements a public charity does not.
Defined against Sec. 509(a).
Which CPA exam sections use private foundation?
Private foundation appears in the TCP section of the CPA exam.
Related terms
- small business corporation: The eligibility test for an S election: a domestic corporation, not an ineligible corporation, with no more than 100 shareholders, no shareholder other than an individual, estate, qualifying trust, or qualifying exempt organization, no nonresident alien shareholder, and one class of stock.
- tax exempt: Not subject to tax.