1. A. Qualified permanent endowment funds shall be submitted for approval by an eligible community foundation.

2. B. In order to be eligible for approval, a qualified permanent endowment fund shall satisfy the following requirements:

   1. (1) The qualified permanent endowment fund shall be held in perpetuity by an eligible community foundation;

   2. (2) The qualified permanent endowment fund shall be used for the benefit of charitable causes in the State, including:

      1. (a) Community services, such as child care, recreational services, and economic development services;
      2. (b) Redevelopment assistance;
      3. (c) Job training for individuals of limited income and related job placement services;
      4. (d) Education;
      5. (e) Crime prevention; or
      6. (f) Other services approved by the Act and the Department; and
   3. (3) The qualified permanent endowment fund shall have an annual spending rate of 5 percent or less calculated using at least a 12-quarter trailing average of the total amount of the fund.

Authority: Tax-General Article, §10-736, Annotated Code of Maryland

Effective date: December 21, 2015 (42:25 Md. R. 1542)