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Story summary
- The 5% payout rule for private foundations has remained unchanged since 1969.
- FoundationMark found 17 of the 40 largest U.S. foundations averaged payouts below 5% over five years.
- Candid forecasts that foundations treat the 5% rule as a tax-form calculation rather than an aspirational goal.
- The MacArthur Foundation raised its payout to 6% in 2025 and reported a 7.1% rate that year.
