I think this s kind of ambiguous. Is foundation a taxable entity? Yes or No? I know some of them are, some of them not, tax rate is very low, but again, can I say, “Foundation is same as endowment, tax free, blar blar blar…”
not taxable as long as they meet their annual distribution requirement
Typically tax free as long as they meet a spending hurdle.
Minimum spending rate applies to private foundations.
The Schweser content is incomplete on the issue of Private Foundations and Taxation. You need to re-read the CFAI text on this one. No one here has given you the right answer.