Foundations: Are tax exempt or not?

CFA Level III
#1

Foundations pay excise tax. But if they can meet spending requirements this will be returned. (or a portion of it will be reimbursed) There is also unrelated business tax. But this is valid for endowments as well. Are these correct?

#2

there is a 1-2% investment income tax on private foundations in the US. but i haven’t ever seen a ques where they consider it

#3

I saw one in schweser session quizes, only today. They say they are not.

#4

I’m a bit worried about this too, but I think that foundations are mostly tax exempt which is enough to state this on the IPS and advise further tax counsel.

#5

I like this counseling business. And if there is any IPS parts which makes me feel unconfortable, I will send the client for counseling.