expenditure responsibility
A term to know.
Within the context of a tax exempt organization, the requirement that the tax exempt (or "sponsoring organization") hold accountable the entity or individual to which it makes grants, as more particularly defined in Section 4945(h). Failure to exercise this accountability may result in a grant being treated and taxed as a taxable expenditure under Section 4966 (DAFs) or under Section 4945 (private foundations).
Synonyms:
Synonyms list
(a comma-separated list)