What Kinds of Financial Expenses Do Not Count Toward the 5% Payout?

With the exception of expenses for the management and product of income, all charitable expenses – including the cost of preparing the foundation’s 990-PF – count towards the payout. So, whether it’s rent, utilities, travel-related expenses, grants, contracts with consultants, or other such expenses – everything that you spend, other than investment management expenses, count towards the payout.

The exception to that is anything that is not charitable or illegal doesn’t count towards the payout.

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Investment and Spending Policies

This Content Collection includes resources describing how a foundation's spending policy and organizational objectives are linked to development of a cohesive and integrated investment strategy, as well as sample policies and other related advice.

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