Charitable nonprofit corporations - private foundations

(1) As used in this section, "charitable purposes" means one or more charitable purposes enumerated in section 501(c)(3) of the federal "Internal Revenue Code of 1986", as amended, hereinafter referred to as "the internal revenue code" and formed exclusively for one or more charitable purposes. (2) In the case of a deemed unincorporated organization, its articles of incorporation shall be presumed to be its principal governing document for the purposes of this section. (3) Except as otherwise provided in its constitution, articles of association, or other principal governing document, the purposes of a charitable nonprofit association and the disposition of its assets upon liquidation shall be limited to charitable purposes. (4) Except as otherwise expressly provided in its constitution, articles of association, or a principal governing document, or otherwise determined by a court of competent jurisdiction, a charitable nonprofit association that is also a private foundation within the meaning of section 509 (a) of the internal revenue code: (a) Shall distribute such amounts for each taxable year at such time and in such manner as not to subject the nonprofit corporation to tax under section 4942 of the internal revenue code; (b) Shall not engage in any act of self-dealing as defined in section 4941(d) of the internal revenue code; (c) Shall not retain any excess business holdings as defined in section 4943(c) of the internal revenue code; (d) Shall not make any investments that would subject the nonprofit association to taxation under section 4944 of the internal revenue code; (e) Shall not make any taxable expenditures as defined in section 4945(d) of the internal revenue code.