kaal:claim:3981021-008

Although the five percent annual payout is only a legal minimum for foundations under 2021 law, many boards treat five percent as the default rule, which entrenches minimal disbursement.

As the law stands in 2021, foundations are only required to spend 5% of their assets a year.51 Although this is a minimum requirement for foundations, many boards view 5% as the default rule.

Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021), Motivation, Tax Free Cash Hoarding, p. 13
https://ssrn.com/abstract=3981021 · source PDF

Wulf A. Kaal, How Decentralized Autonomous Organizations Optimize Charitable Giving (2021). SSRN: https://ssrn.com/abstract=3981021

• United States private foundations as of 2021

failuresupport: evidencedfailure: Minimum payout becomes the defaultfamily: board-and-oversight-failurelaw-and-legal-systemsrisk-and-incentives

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