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How is NGO’s regulated?
The federal government (IRS) in the United States mandates family foundations to:
Annually distribute at least 5% of their endowment.
Pay a 1% or 2% excise tax on their earnings.
Make certain that grant funds are used for philanthropic purposes.
Foundations are also overseen by state governments. In addition to family foundations, there are numerous other types of foundations. Visit the Council on Foundations to learn more.