### Question
How does the law define taxable distribution?


### Answer
Under *26 U.S.C. § 4966*, **taxable distribution** is defined as:

> any distribution from a donor advised fund—


(A) to any natural person, or


(B) to any other person if—


(i) such distribution is for any purpose other than one specified in section 170(c)(2)(B), or


(ii) the sponsoring organization does not exercise expenditure responsibility with respect to such distribution in accordance with section 4945(h)

#### Citation:
  - *26 U.S.C. § 4966*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter G-Donor Advised Funds**

