The December figure · a specimen
December's answer, written in October.
Read from the foundation's own monthly statements: what is left to distribute by year end, this year's own amount, and the next tax installment. Every figure tied to its line and its statement.
The foundation, its custodian account, its statements and every figure on this page are fictitious.
The Merridew-Ashcombe Foundation · as of 21 October 2026
Four dates. Four figures.
31 December 2026
$158,756
Still to distribute from 2025. The return carried in $1,226,256; 6 payments since January have met $1,067,500 of it.Part XII, line 2a less line 4a
15 December 2026
$32,665
The fourth installment of the $130,660 tax on investment income. The first three were paid in full by their dates.Form 990-W, line 12
31 December 2027
$8,585,818
This year’s own amount, projected. On the 9 months recorded it stands at $8,527,028; October to December are held at September’s values until each is recorded.Parts IX and X, line 7
31 December 2026
None
Carryover from five years back that this year leaves unused, and so carries no further. This foundation carries none.Part XII, line 8
this year’s amount is $8,585,818, to distribute by 31 December 2027.
The working
Every line, to its source.
| Line | What it is | Amount | Rests on |
|---|---|---|---|
| Part XII, line 2a | Undistributed income carried in from last year | $1,226,256 | filed The 2025 Form 990-PF as filed, Part XII line 6f |
| Part XI | Qualifying distributions paid this year, to 21 October 2026 | $1,067,500 | recorded 6 payments on the record, each on the cash basis, each with its source |
| Part XII, line 4a | Applied first to last year's amount (§4942(h)(1)(A)) | $1,067,500 | computed The lesser of the two lines above |
| Part XII, line 6e, as the year stands | Still to distribute by 31 December 2026 | $158,756 | computed Line 2a less line 4a |
| Part IX, line 1a | Average monthly value of quoted securities (9 of 12 months recorded) | $172,410,139 | recorded The mean of the recorded months, each valued on the method's day from the statement named beside it |
| Part IX, line 1b | Average monthly cash | $3,380,481 | recorded Each month's first-day and last-day balance, averaged, then the months averaged (Treas. Reg. §53.4942(a)-2(c)(4)(ii)) |
| Part IX, line 1c | Other assets | $0 | stated by the foundation None held |
| Part IX, line 4 | Cash deemed held for charitable activities (1.5%) | $2,636,859 | computed 1.5% of line 3 |
| Part IX, line 6 | Minimum investment return (5%) | $8,657,688 | computed 5% of line 5 |
| Part X, line 2a | Tax on net investment income (1.39%) | $130,660 | computed Net investment income for 2026 as the foundation projects it: $9,400,000 |
| Part X, line 7 | Distributable amount on the months recorded | $8,527,028 | computed Line 6 less line 2a |
| Part X, line 7, projected | Distributable amount for the full year, projected | $8,585,818 | projected The 3 months not yet recorded (Oct 2026, Nov 2026, Dec 2026) held at Sep 2026's values. A projection, labelled as one; it becomes a figure as each month is recorded. |
| Part XII, line 8, as the year stands | Carryover from five years back not used this year | $0 | computed The excess carried in from the year ended 31 December 2021, less what this year applies (oldest first) |
| Form 990-W, line 10a | This year's tax, estimated | $130,660 | computed Net investment income for 2026 as the foundation projects it: $9,400,000 |
| Form 990-W, line 10b | Last year's tax | $127,674 | filed The 2025 Form 990-PF as filed, Part XII line 6f |
The record behind it
Nine months, each from its statement.
| Month | Quoted securities | Cash, first and last day averaged | Statement | Recorded |
|---|---|---|---|---|
| January | $171,204,300 | $3,646,525 | Account ending 4417, 30 January 2026 | 9 February 2026 |
| February | $168,912,750 | $3,333,875 | Account ending 4417, 27 February 2026 | 9 March 2026 |
| March | $166,430,200 | $3,182,000 | Account ending 4417, 31 March 2026 | 9 April 2026 |
| April | $169,880,400 | $3,371,550 | Account ending 4417, 30 April 2026 | 9 May 2026 |
| May | $172,315,900 | $3,567,975 | Account ending 4417, 29 May 2026 | 9 June 2026 |
| June | $174,026,100 | $3,314,525 | Account ending 4417, 30 June 2026 | 9 July 2026 |
| July | $176,540,800 | $3,257,875 | Account ending 4417, 31 July 2026 | 9 August 2026 |
| August | $175,112,300 | $3,453,025 | Account ending 4417, 31 August 2026 | 9 September 2026 |
| September | $177,268,500 | $3,296,975 | Account ending 4417, 30 September 2026 | 9 October 2026 |
| Installment | Due | Amount | Paid by its date | Standing |
|---|---|---|---|---|
| First | 15 May 2026 | $31,919 | $31,919 | paid in full by its date |
| Second | 15 June 2026 | $33,412 | $33,412 | paid in full by its date |
| Third | 15 September 2026 | $32,665 | $32,665 | paid in full by its date |
| Fourth | 15 December 2026 | $32,665 | – | falls on a later day |
A foundation whose investment income reached $1 million in any of the three years before pays its first installment on last year’s tax and catches up in the second; this one did, so the second is larger than the others. Form 990-W, line 12.
Why it exists
The part of the year no return shows.
What tax software takes as given: Two averages, typed by hand
Twelve months of statements per account, reduced to Part IX lines 1a and 1b.
What nobody knows until year end: This year's own amount
The 5% figure rests on the year's average. The record keeps it monthly.
What the client asks in December: How much, and by when
Last year's carried amount, less every payment since January, on the cash basis.
What it is, and what it is not
The figures
Every figure is the foundation's own: its filed return, its monthly statements, its payment record. Nothing is estimated except the line marked projected.
Missing months
A month not yet recorded is not counted as zero; the figure on the months recorded and the projection are shown apart.
Payments
Qualifying distributions are counted on the cash basis, on the day they left the foundation, and applied in the order Part XII applies them. No election is applied unless the record states it.
The tax
The tax is 1.39% of net investment income as the foundation projects it. The installments follow Form 990-W line 12 without the annualized or seasonal methods.
The return
It prepares no return and reviews none. The preparer files the return; this is the record the preparer files it from.
By appointment
Your foundation's December, from its own statements.
No statement is received before an engagement begins.