One difference between private foundations and Universities

Reader comment on: Endowment Tax

Submitted by Lyle (United States), Nov 1, 2017 11:25

A private foundation is mandated by tax law to spend 5% of its networth on whatever it is supposed to do while there is no minimum spend for University endowments. In essence the tax law has said that sooner or later a private foundation must dissolve as it spent all its funds. (Assuming you can't get 5%+ returns on the money) So an alternative might be to put a minimum spending percentage on endowments.

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Title By Date
Good insight, now follow it further… [54 words]Adam WildavskyNov 2, 2017 09:03
⇒ One difference between private foundations and Universities [74 words]LyleNov 1, 2017 11:25

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