2008/11/11 Anthony <wikimail(a)inbox.org>rg>:
Don't forget the private foundation excise taxes.
A 501(c)(3) which relies
solely on interest income to support its needs, fails the public support
test.
Where can you safely get 5% interest, anyway? The 30-year bond is around
4%. Long-term municipal bonds are around 5%, but they're not totally safe
nowadays. And this is, as Gregory pointed out, before inflation. The
chance that the US is going to start adding zeros to its dollar bills in the
next 30-years is non-negligible.
Those numbers were thrown together to show that even with some very
generous assumptions the approach was impractical.
--
geni