Disqualified Person in United States

Definition of Disqualified Person

A concept of Disqualified Person applicable in the United States: For public charities, a disqualified person is someone who, at any time during the fiveyear period ending on the date of the transaction in question, was “in a position to exercise substantial influence over the affairs of the organization.” Certain members of a disqualified person’s family fall into this category, as does any entity in which one or more disqualified persons together own, directly or indirectly, more than a 35 percent interest. Disqualified persons of public charities recognized as “supporting organizations” also include substantial contributors and their family members. Disqualified persons of donor-advised funds held by public charities include donors, investment advisors, and their family members. For private foundations, the definition of a disqualified person includes all of the above as well as substantial donors, owners of more than 20 percent of a corporation, trust, or partnership that is a substantial contributor to the foundation, and certain family members of any of these persons. Certain government officials are also considered disqualified persons of private foundations. See also Substantial contributor.

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See Also

• Charity
• Foundation
• NGOs