Questions Answered
What is the private foundation 5% rule?
A direct, search-first answer for families and advisors.
Nonoperating foundations generally compute a distributable amount tied to a 5% minimum investment return on noncharitable-use assets, with adjustments.
Direct answer
Nonoperating foundations generally compute a distributable amount tied to a 5% minimum investment return on noncharitable-use assets, with adjustments.
Why this matters
Family-office decisions cross legal, tax, investment, insurance, philanthropic, governance and operational boundaries. Use this answer to frame the next question for the appropriate qualified professionals.
Sources and research trail
This page was developed from the source manuscript and should be read with the publication's primary-source library.
- See the primary-source library and related feature articles