Independent: 5% of average market value of assets Company sponsored: 5% of average market value of assets Operating: at least 85% of dividends plus interest incomeCommunity: None Is above in line with the practice question you have done?
2013 mock AM Q6 says the foundation’s risk tolerance is above average because “it does not have contractually-defined liability stream. Its 6% annual spending requirement is not a contractual obligation.”
But I remember reading in the text that one of the key difference between foundation and endowment is that foundation have mandatory spending requirement (to maintain their tax-exempt status?)
so foundations have discretionary spending requirement?