Editor’s note: The information in this article is not a substitute for expert legal, tax, or other professional advice. The information is also subject to change. Please consult a professional advisor for specific legal or tax questions and issues. If you are an NCFP member, we’d be happy to introduce you to a verified professional through our legal referral service.
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.