### Question
Can you define what excess benefit transaction means?


### Answer
**Excess benefit transaction** is defined as the following in *26 U.S.C. § 4958*:

> any transaction in which an economic benefit is provided by an applicable tax-exempt organization directly or indirectly to or for the use of any disqualified person if the value of the economic benefit provided exceeds the value of the consideration (including the performance of services) received for providing such benefit

#### Citation:
  - *26 U.S.C. § 4958*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter D-Failure by Certain Charitable Organizations To Meet Certain Qualification Requirements**

