PRIVATE FOUNDATIONS

K.S.A. ch. 79, art. 46

in effect

K.S.A. 79-4601 Private foundation; corporation as; acts prohibited.

79-4601. Private foundation; corporation as; acts prohibited. No corporation which is a "private foundation" as defined in § 509 (a) of the internal revenue code of 1954, shall (a) engage in any act of "self-dealing" (as defined in § 4941 (d) of the internal revenue code of 1954), which would give rise to any liability for the tax imposed by § 4941 (a) of the internal revenue code of 1954; (b) retain any "excess business holdings" (as defined in § 4943 (c) of the internal revenue code of 1954), which would give rise to any liability for the tax imposed by § 4943 (a) of the internal revenue code of 1954; (c) make any investment which would jeopardize the carrying out of any of its exempt purposes, within the meaning of § 4944 of the internal revenue code of 1954, so as to give rise to any liability for the tax imposed by § 4944 (a) of the internal revenue code of 1954; and (d) make any "taxable expenditures" (as defined in § 4945 (d) of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4945 (a) of the internal revenue code of 1954. L. 1971, ch. 313, § 1; July 1. Attorney General's Opinions: Financial interest of officer or director in corporate transaction; application to certain nonprofit corporations. 89-44.

K.S.A. 79-4602 Same; distribution required.

79-4602. Same; distribution required. Each corporation which is a "private foundation" as defined in § 509 of the internal revenue code of 1954 shall distribute, for the purposes specified in its articles of organization, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by § 4942 (a) of the internal revenue code of 1954. L. 1971, ch. 313, § 2; July 1.

K.S.A. 79-4603 Application of act; exceptions.

79-4603. Application of act; exceptions. The provisions of K.S.A. 79-4601 and 79-4602 shall not apply to any corporation to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the articles of organization or other instrument governing such corporation or governing the administration of charitable funds held by it and that the same may not properly be changed to conform to such sections. L. 1971, ch. 313, § 3; July 1.

K.S.A. 79-4604 Authority of courts and attorney general not impaired.

79-4604. Authority of courts and attorney general not impaired. Nothing in this act shall impair the rights and powers of the courts or the attorney general of this state with respect to any corporation. L. 1971, ch. 313, § 4; July 1.

K.S.A. 79-4605 Trusts which are private foundations, charitable trusts or split-interest trusts; acts prohibited.

79-4605. Trusts which are private foundations, charitable trusts or split-interest trusts; acts prohibited. (1) In the administration of any trust which is a "private foundation," as defined in § 509 of the internal revenue code of 1954, a "charitable trust," as defined in § 4947 (a) (1) of the internal revenue code of 1954, or a "split-interest trust" as defined in § 4947 (a) (2) of the internal revenue code of 1954, the following acts shall be prohibited: (a) Engaging in any act of "self-dealing" (as defined in § 4941 (d) of the internal revenue code of 1954), which would give rise to any liability for the tax imposed by § 4941 (a) of the internal revenue code of 1954; (b) retaining any "excess business holdings" (as defined in § 4943 (c) of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4943 (a) of the internal revenue code of 1954; (c) making any investments which would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of § 4944 of the internal revenue code of 1954, so as to give rise to any liability for the tax imposed by § 4944 (a) of the internal revenue code of 1954; and (d) making any "taxable expenditures" (as defined in § 4945 (d) of the internal revenue code of 1954) which would give rise to any liability for the tax imposed by § 4945 (a) of the internal revenue code of 1954. This section shall not apply either to those split-interest trusts or to amounts thereof which are not subject to the prohibitions applicable to private foundations by reason of the provisions of § 4947 of the internal revenue code of 1954. L. 1971, ch. 314, § 1; July 1. Cross References to Related Sections: Cy-pres rule; amendment or construction of will or trust to preserve federal estate tax deduction, see 59-22a01. Law Review and Bar Journal References: "Qualifying Testamentary Gifts of Charitable Remainders for the Estate Tax Deduction," John F. Kuether, 50 J.B.A.K. 252, 262 (1981). CASE ANNOTATIONS 1. Transaction violated statute prohibiting self-dealing. Mark Twain Kansas City Bank v. Kroh Bros. Dev. Co., 250 Kan. 754, 765, 829 P.2d 907 (1992).

K.S.A. 79-4606 Same; distribution required.

79-4606. Same; distribution required. In the administration of any trust which is a "private foundation" as defined in § 509 of the internal revenue code of 1954, or which is a "charitable trust" as defined in § 4947 (a) (1) of the internal revenue code of 1954, there shall be distributed, for the purposes specified in the trust instrument, for each taxable year, amounts at least sufficient to avoid liability for the tax imposed by § 4942 (a) of the internal revenue code of 1954. L. 1971, ch. 314, § 2; July 1.

K.S.A. 79-4607 Application of act; exceptions.

79-4607. Application of act; exceptions. The provisions of K.S.A. 79-4605 and 79-4606 shall not apply to any trust to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the instrument governing such trust and that the same may not properly be changed to conform to such sections. L. 1971, ch. 314, § 3; July 1.

K.S.A. 79-4608 Authority of courts and attorney general not impaired.

79-4608. Authority of courts and attorney general not impaired. Nothing in this act shall impair the rights and powers of the courts or the attorney general of this state with respect to any trust. L. 1971, ch. 314, § 4; July 1.

Source: Kansas Office of Revisor of Statutes (ksrevisor.gov)URL: https://www.ksrevisor.gov/statutes/ksa_ch79.htmlFetched: 10/20/2026