With private foundations approaching their year‐end, it is important to consider how today’s financial actions affect year‐end reporting. Below are some of the items and reminders to consider before year‐end:

Required Distributions of Income

Non-operating private foundations must annually distribute 5% of the value of their average non-charitable use assets each year. Non-charitable use assets include all assets other than those used directly in carrying out the foundation’s exempt purpose. The foundation’s current year qualifying distributions are applied toward this 5% distributable amount, also referred to as the required minimum distribution or “RMD,” to determine whether the foundation will have any excess distributions carried forward to next year or whether the foundation will need to make it up by the end of the following tax year.


Important Topics: Washington State and Local Tax

The following supplement is intended for Washington-based organizations and covers topics such as Washington State renewals and reporting obligations, the Washington State capital gains tax, the Seattle payroll expense tax, and more.

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