### Question
What does taxable expenditure mean?


### Answer
**Taxable expenditure** has the following meaning in *26 U.S.C. § 4945*:

> any amount paid or incurred by a private foundation—


(1) to carry on propaganda, or otherwise to attempt, to influence legislation, within the meaning of subsection (e),


(2) except as provided in subsection (f), to influence the outcome of any specific public election, or to carry on, directly or indirectly, any voter registration drive,


(3) as a grant to an individual for travel, study, or other similar purposes by such individual, unless such grant satisfies the requirements of subsection (g),


(4) as a grant to an organization unless—


(A) such organization is described in paragraph (1), (2), or (3) of section 509(a) or is an exempt operating foundation (as defined in section 4940(d)(2)), or


(B) the private foundation exercises expenditure responsibility with respect to such grant in accordance with subsection (h), or


  

(5) for any purpose other than one specified in section 170(c)(2)(B)

#### Citation:
  - *26 U.S.C. § 4945*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter A-Private Foundations**

