Source: ThinkAdvisor
Private U.S. foundations are required to distribute 5% of their assets annually, but very few major foundations ever go beyond that requirement, reports from the Foundation Center confirmed.
Grants, taxes and administrative expenses currently qualify as “distributions”, but major donors fear that foundations fulfill most of that requirement through small, administrative expenses only.
Foundations have previously lobbied against removing administrative expenses as part of the required distribution rate.
Foundations leaders however defend their stance on spending only the required percentage, saying that it is their duty to protect their endowments in order to serve future generations.
Read full story at: ThinkAdvisor