Title 5. Special Types of Corporations — Subtitle 4. Private Foundations
Statutes in effect as of October 1, 2026.
Md. Code Ann., Corps. & Ass'ns § 5-401 (2026)
Title 5. Special Types of Corporations
Subtitle 4. Private Foundations
§ 5–401LinkCopy Citation
In this subtitle, “private foundation” means a Maryland corporation which is a private foundation as defined in § 509(a) of the Internal Revenue Code.
Md. Code Ann., Corps. & Ass'ns § 5-402 (2026)
Title 5. Special Types of Corporations
Subtitle 4. Private Foundations
§ 5–402LinkCopy Citation
A private foundation may not:
(1)
Engage in any act of “self-dealing”, as defined in § 4941(d) of the Internal Revenue Code, which would cause any tax liability under § 4941(a) of the Internal Revenue Code;
(2)
Retain any “excess business holdings”, as defined in § 4943(c) of the Internal Revenue Code, which would cause any tax liability under § 4943 (a) of the Internal Revenue Code;
(3)
Make any investment which would jeopardize the carrying out of any of its exempt purposes under § 4944 of the Internal Revenue Code and cause any tax liability under § 4944(a) of the Internal Revenue Code; or
(4)
Make any “taxable expenditures”, as defined in § 4945(d) of the Internal Revenue Code, which would cause any tax liability under § 4945(a) of the Internal Revenue Code.
Md. Code Ann., Corps. & Ass'ns § 5-403 (2026)
Title 5. Special Types of Corporations
Subtitle 4. Private Foundations
§ 5–403LinkCopy Citation
For each taxable year, a private foundation shall distribute for the purposes specified in its charter amounts sufficient to avoid tax liability under § 4942(a) of the Internal Revenue Code.
Md. Code Ann., Corps. & Ass'ns § 5-404 (2026)
Title 5. Special Types of Corporations
Subtitle 4. Private Foundations
§ 5–404LinkCopy Citation
The provisions of §§ 5-402 and 5-403 of this subtitle do not apply to any private foundation to the extent that a court of competent jurisdiction, under a judicial proceeding begun by the private foundation before January 1, 1972, determines that:
(1)
The application of these sections is contrary to the terms of the charter or other instrument governing the private foundation or the administration of charitable funds held by it; and
(2)
The charter or other governing instrument may not properly be changed to conform to these sections.
Md. Code Ann., Corps. & Ass'ns § 5-405 (2026)
Title 5. Special Types of Corporations
Subtitle 4. Private Foundations
§ 5–405LinkCopy Citation
This subtitle does not impair the rights and powers of the courts of this State or the Attorney General of this State with respect to any corporation.