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TITLE 26-INTERNAL REVENUE CODE EFFCTIVE DATE OF 1976 AMENDMEMT Amendment of subsecs. (a) (b). (c)(2)(A), (d)(2)(A), (e)(2)(A) to (C), by section 1901(a)(71)(A) to (C), (b)(8)(E) of Pub. L. 94-455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 2 of this title. EFFErIvz DATE Section effective Jan. 1, 1970, except that subsecs. (a), (b), and (c) of this section effective Oct. 9, 1969, see section 101(k)(1), (3) of Pub. L. 91-172, set out as an Effective Date note under section 4940 of this title. SAVINGS PROVISION Limits on inclusion of provisions inconsistent with subsec. (e) of this section in governing instruments, see section 101(1)(6) of Pub. L. 91-172, set out as Sav- ings Provisions note under section 4940 of this title. SECTION RmRmRD TO IN OTHER SECTIONS This section is referred to in sections 170, 663, 681, 2055, 2522, 4947, 4948, 6104 of this title. § 509. Private foundation defined (a) General rule For purposes of this title, the term "private foundation" means a domestic or foreign orga- nization described in section 501(c)(3) other than- (1) an organization described in section 170(b)(1)(A) (other than in clauses (vii) and (viii)); (2) an organization which- (A) normally receives more than one-third of its support in each taxable year from any combination of- (i) gifts, grants, contributions, or meni- bership fees, and (Ii) gross receipts from admissions, sales of merchandise, performance of services, or furnishing of facilities, in an activity which is not an unrelated trade or busi- ness (within the meaning of section 513), not including such receipts from any person, or from any bureau or similar agency of a governmental unit (as de- scribed in section 170(c)(1)), in any tax- able year to the extent such receipts exceed the greater of $5,000 or 1 percent of the organization's support in such tax- able year, from persons other than disqualified per- sons (as defined in section 4946) with re- spect to the organization, from governmen- tal units described in section 170(c)(1), or from organizations described in section 170(b)(1)(A) (other than in clauses (vii) and (viii)), and (B) normally receives not more than one- third of its support in each taxable year from the sum of- (i) gross investment income (as defined in subsection (e)) and (i) the excess (if any) of the amount of the unrelated business taxable income (as defined in section 512) over the amount of the tax Imposed by section 511; (3) an organization which- (A) is organized, and at all times there- after is operated, exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more specified organizations described in paragraph (1) or (2). (B) Is operated, supervised, or controlled by or in connection with one or more orga- nizations described in paragraph (1) or (2), and (C) is not controlled directly or indirectly by one or more disqualified persons (as de- fined in section 4946) other than founda- tion managers and other than one or more organizations described in paragraph (1) or (2); and (4) an organization which is organized and operated exclusively for testing for public safety. For purposes of paragraph (3), an organization described in paragraph (2) shall be deemed to include an organization described in section 501(c)(4), (5), or (6) which would be described in paragraph (2) if it were an organization de- scribed in section 501(c)(3). (b) Continuation of private foundation status For purposes of this title, if an organization is a private foundation (within the meaning of subsection (a)) on October 9, 1969, or becomes a private foundation on any subsequent date, such organization shall be treated as a private foundation for all periods after October 9, 1969, or after such subsequent date, unless its status as such is terminated under section 507. (c) Status of organization after termination of private foundation status For purposes of this part, an organization the status of which as a private foundation is termi- nated under section 507 shall (except as pro- vided in section 507(b)(2)) be treated as an or- ganization created on the day after the date of such termination. (d) Definition of support For purposes of this part and chapter 42, the term "support" includes (but is not limited to)- (1) gifts, grants, contributions, or member- ship fees, (2) gross receipts from admissions, sales of merchandise, performance of services, or fur- nishing of facilities in any activity which is not an unrelated trade or business (within the meaning of section 513), (3) net incomefrom unrelated business ac- tivities, whether or not such activities are car- ried on regularly as a trade or business, (4) gross investment income (as defined in subsection (e)), (5) tax revenues levied for the benefit of an organization and either paid to or expended on behalf of such organization, and (6) the value of services or facilities (exclu- sive of services or facilities generally fur- nished to the public without charge) fur- nished by a governmental unit referred to in section 170(c)(1) to an organization without charge. Such term does not include any gain from the sale or other disposition of property which would be considered as gain from the sale or ex- change of a capital asset, or the value of ex- emption from any Federal, State, or local tax or any similar benefit. §509 Page 388