(a) Except as otherwise provided in subsection (b) of this section, a nonprofit corporation that is a private foundation as defined in section 509(a) of the Internal Revenue Code of 1986, approved December 30, 1969 (83 Stat. 496; 26 U.S.C. § 509(a)) (“Internal Revenue Code”), shall:
(1) 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 Internal Revenue Code;
(2) Not engage in any act of self-dealing as defined in section 4941(d) of the Internal Revenue Code;
(3) Not retain any excess business holdings as defined in section 4943(c) of the Internal Revenue Code;
(4) Not make any investments in such manner as to subject the corporation to tax under section 4944 of the Internal Revenue Code; and
(5) Not make any taxable expenditures as defined in section 4945(d) of the Internal Revenue Code.
(b) Subsection (a) of this section shall not apply to a nonprofit corporation incorporated before January 1, 1970 that has been properly relieved from the requirements of section 508(e)(1) of the Internal Revenue Code by a timely judicial proceeding.