HRS §414D-16
Rules for private foundation corporations
Read the official text at capitol.hawaii.gov ↗This section tells private foundation corporations what they must do to avoid certain federal taxes. It requires them to make required distributions and bans self-dealing, excess business holdings, risky investments, and taxable spending. A court can change these rules if it decides otherwise.
The statute, as written — Private foundations
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
Except as otherwise determined by a court of competent jurisdiction, a corporation that is a private foundation as defined in section 509(a) of the Code: (1) Shall distribute such amounts for each taxable year at such time and in such manner as not to subject the corporation to tax under section 4942 of the Code; (2) Shall not engage in any act of self-dealing as defined in section 4941(d) of the Code; (3) Shall not retain any excess business holdings as defined in section 4943(c) of the Code; (4) Shall not make any investments in such manner as to subject the corporation to tax under section 4944 of the Code; (5) Shall not make any taxable expenditures as defined in section 4945(d) of the Code.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.