Do foundations also have smoothing rules? average, simple, without, assets

adehbone

I know there are 3 types of spending rules for endowments (simple, rolling 3 year, geometric), but do foundations also have them or do they do 5% of the average assets without any kind of rule?

wake2000

Foundations (except Community and Operating) definitely have a min 5% of last 12m NAV spending rule, otherwise they have to pay tax.

However, Bradleyz you raised a good point - can foundations use the Rolling 3 Year and Geometric Smoothing Rules, or can they only use the Simple Rule?

dyga

they are required by law to do 5% of assets, so they really arent at liberty to pay less because a speding rule says they should spend 4% this year.

Unless it is community foundation with no 5% spending requirement, then i would assume they can have a spending rule.