- By the end of the fifty-year simulation period, a foundation consistently paying out 5% would be granting $840 million more to charity than a foundation paying out 12%. Over the entire fifty-year, a twenty-two-fold difference. Over the entire fifty-year period, a foundation operating under the 5% rule would have donated almost $21 billion more to charity than a foundation operating under 12% payout rules.
- By the end of the fifty-year simulation period, a foundation under the 5% rule would still be able to provide enough support to cover two-thirds (66%) of current operating costs, while a foundation subject to 12% rules would only be able to cover about 3% of St. Jude’s current operating expenses.
Source: What Higher Foundation Payout Rules Would Mean for Charities