(1) Except as provided in subsection (2) of this section, a nonprofit corporation that is a private foundation as defined in section 509(a) of the internal revenue code shall:
(a) Distribute sufficient amounts for each taxable year at a time and in a manner so as not to subject the corporation to tax under section 4942 of the internal revenue code;
(b) Not engage in any act of self-dealing as defined in section 4941(d) of the internal revenue code;
(c) Not retain any excess business holdings as defined in section 4943(c) of the internal revenue code;
(d) Not make any investments in a manner that subjects the corporation to tax under section 4944 of the internal revenue code; and
(e) Not make any taxable expenditures as defined in section 4945(d) of the internal revenue code.
(2) Subsection (1) of this section does 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.