Our Community Foundation has a request to establish a designated fund for the maintenance of an historic family cemetery. The cemetery currently has status as a 501c13 cemetery company with IRS. Even though their annual revenue is relatively small, under the new IRS rules they must file a 990. If the community foundation establishes a designated fund, then contributions to it are tax deductible and no seperate 990 is required. That is the easy part. The question becomes "are distributions from the fund for maintenance of the cemetery allowable if the cemetery is on family owned land?"
Anyone who has a similar experience or has knowledge on this issue please share your thoughts. Thank you.
Cemetery company
Thank you!