Excess Qualifying Distributions

An excess qualifying distribution is the amount by which the total qualifying distributions treated as made out of undistributed income for any tax year beginning after 1969, or as made out of corpus for the tax year (other than distributions by donee organizations described in Certain contributions to exempt organizations, or the amount applied to a prior tax year by the choices with respect to qualifying distributions) exceed the distributable amount for that tax year.

Note: A foundation may not refresh expiring distribution carryovers beyond the statutory five-year carryover period by electing to treat current distributions as made out of corpus.  See Refreshing Expiring Distribution Carryovers for more information.

Return to Life Cycle of a Private Foundation