Skip navigation
Haskell GettyImages-1325902226.jpg

Classifying An Asset for Charitable Purposes

It’s not enough to show that it isn’t held as an investment or to produce income.

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.

All access premium subscription

Please Log in if you are currently a Trusts & Estates subscriber.

If you are interested in becoming a subscriber with unlimited article access, please select Subscription Options below.

Questions about your account or how to access content?

Contact: [email protected]

TAGS: Philanthropy
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.