Trusts & Estates BROUGHT TO YOU BY brought to you by Wealth Planning>Estate Planning Classifying An Asset for Charitable Purposes It’s not enough to show that it isn’t held as an investment or to produce income.

Jeffrey D. Haskell, Jennifer Bruckman-Gorak | Sep 18, 2023

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Many are unaware that the assets of a private foundation (PF) can be categorized as held for either investment or charitable purposes. However, the classification as one or the other can be of crucial importance to a PF. A PF’s investment assets are included in its asset base in calculating its 5% annual minimum distribution requirement (MDR), whereas assets used—or held for use—in carrying out a PF’s charitable purposes are excluded from such asset base.

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