### Question
What does excess parachute payment mean?


### Answer
**Excess parachute payment** has the following meaning in *26 U.S.C. § 4960*:

> an amount equal to the excess of any parachute payment over the portion of the base amount allocated to such payment

#### Citation:
  - *26 U.S.C. § 4960*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 42-PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS > Subchapter D-Failure by Certain Charitable Organizations To Meet Certain Qualification Requirements**

