Required Distributions: 5% of What?
Author: Nicole S. Splitte.; Stephen J. Roberts.
Source: Volume 03, Number 05, July/August 2004 , pp.3-3(1)
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Abstract:
A Wall Street Journal editorial chided charitable foundations to pay out at least 5% of their assets (“Giving a Full 5%,” August 4, 2003). Former Senator Bill Bradley and two McKinsey directors suggest in a May, 2003, Harvard Business Reviewarticle that foundation distributions should be upped to 7%. But the debate on the distribution topic sidesteps one important issue—5% (or 7%) of what? Just because the assets are “worth $100,” does the foundation have to pay out 5% of this number?Keywords:
Affiliations:
1: Management Planning.