are 501 c 3 organizations required to pay out a certain percentage of their assets or earnings each year?

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are 501 c 3 organizations required to pay out a certain percentage of their assets or earnings each year?

2007-07-31 18:53:46 · 3 answers · asked by jimmy 1 in Business & Finance ➔ Taxes ➔ United States

3 answers

Only foundations have a requirement to pay out a certain percentage (5%) of their assets. Otherwise, if it is just a plain-vanilla charitable organization, then no requirement.

2007-08-01 04:27:11 · answer #1 · answered by Omar B 2 · 1⤊ 0⤋

As Omar correctly said, that is a requirement only if they are a foundation.

2007-08-01 12:04:15 · answer #2 · answered by Judy 7 · 0⤊ 0⤋

No they are not! This could become an issue in showing that they are really a charity.

2007-08-01 08:33:56 · answer #3 · answered by ? 6 · 0⤊ 0⤋