Can a private foundation count administrative expenses toward its annual distribution requirement? - Exponent Philanthropy

Can a private foundation count administrative expenses toward its annual distribution requirement?

From a tax law perspective, a private foundation may pay “reasonable and necessary” administrative expenses—and count them toward its annual distribution requirement—without subjecting the foundation or its managers to a penalty tax.

These expenses must be (a) related to the accomplishment of the foundation’s charitable purposes, (b) related to its investments, or (c) payments of taxes.

Learn more about foundation administrative expenses >>

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