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payout (annual payout requirement) - The minimum amount, set by law at 5% of assets, that private foundations in the United States must distribute every year in grants and administrative costs. >> FUND RAISING, PHILANTHROPY, FOUNDATIONS

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Many foundations limit their spending to the minimum of 5% in order to preserve their assets over the long-term. However, some foundations are increasing their payout in order to address urgent needs, such as protecting the environment.


Beyond Five Percent - The New Foundation Payout Menu by Heidi Waleson, available as a PDF file from Northern California Grantmakers