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Dear Zachary, thank you.
However my question was a little different.
My question is whether the corporate donor ACME Corp that funds a 501c3 foundation called ACME Foundation can direct the ACME Foundation NOT to give employee matching funds to a specific operating charity, called Books for Kids, which the corporate donor considers to be acting in a way contrary to the corporation's interests, i.e., has a lawsuit pending against ACME Corp.
ACME corp has no right to directly order the Foundation, as the Foundation is independent from ACME corp. However, I assume that ACME corp has employees that are sitting on the board of the Foundation. Thus, the directors may act to cause the Foundation to revoke the conditional pledge offer. Nevertheless, if the employee has already made the donation and triggers the Foundation's conditional gift responsibilities, any vote by the directors to not order the Foundation to pay could be seen an an improper conflict of interests (which the directors would need to disclose) and could expose the directors personally to fiduciary breach liability.
I will review the statutes on this to see if there is any actual code which is applicable here.
Dear Zachary, I was under the impression however that the donor corporation could direct its private foundation NOT to make grants that in effect would be contrary to its best interests. Can you find anything relevant to this principle?
Last question and thank you for your research and opinion.
"A private foundation under 26 USC 509 is in fact allowed to retain control over the direction of its donation and can direct the Foundation to not make the contribution."
Did you actually mean "A corporate donor to a private foundation under 26 USC 509 is in fact allowed to retain control over the direction of its donation ...." ?
I think that is the issue you were addressing and researching - right?
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