Foundation: 5% spending goal but no minimum spending requirement

CFA Level III
#1

2015 exam question 2

What does this mean? Does it mean even though the foundation has a 5% spending goal but it doesn’t have to meet this objective?

I know that “no minimum spending requirement” increases its ability to take risk but how about the 5% spending goal, does it increase or decrease its risk-taking ability?

#2

I see 5% as the average risk ability: anything below increases (and above decreases) risk ability