Jun 1, 2005 12:00 PM

By Douglas Moore, national director of estate & charitable planning, and Ajay Badlani, head of U.S.

Private non-operating foundations in recent years have faced increasing governmental scrutiny of their compliance with the Internal Revenue Code¹ and evolving prudent investor standards — as well as inconsistent equity market returns and low returns from fixed income.

Some investment advisors expect that in the next few years returns on traditional investments will be in the low-to-middle single digits. At the same time, possible increases in inflation could diminish spending power of private foundations. Investment returns may be insufficient to keep pace with required disbursements (qualifying distributions,² excise tax on net investment income³ and certain administration expenses) and inflation. Foundations may have to have minimum annual returns of 8.5 percent (due to disbursements and inflation) just to maintain the spending power of their investment assets.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

Click here to read the issue.

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

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