Private foundations play a vital role in philanthropy, providing financial support to a variety of charitable causes. To ensure that these foundations fulfill their charitable missions, the IRS established the 5% rule. In this blog post, we'll explore the history of this rule and delve into how it's calculated.

Not all private foundations are required to undergo audits, however understanding when an audit is necessary and why it can be good practice even when not mandated is essential. In this blog post, we'll explore these aspects in detail.

Private foundations play a vital role in philanthropy, but they are subject to specific regulations to ensure they fulfill their charitable mission. Among these regulations is the Minimum Distribution Requirement, which outlines how much a foundation must distribute annually. In this blog post, we'll explore what the Minimum Distribution is, what constitutes an Underpayment, the timeline for rectifying it, and the associated tax penalties.