A set-aside approved by the Service or that meets the cash distribution test should be shown by entering a dollar amount on the books of the foundation as a pledge or obligation to be paid at a future date or dates. Any amount set aside will be taken into account in figuring the foundation's minimum investment return and any income from the set-aside should be taken into account in figuring the adjusted net income of private operating foundations. The amount set aside need not reflect an accumulation of income, but may be a bookkeeping entry that will require funding out of corpus by the end of the set-aside period.
