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Spending Policy for Endowed Funds

The Spending Policy is determined by a total return system and is the basis for determining the amount available to be distributed from the endowed funds held by the Foundation. 

The payout calculation is based on a 12-quarter moving average of the market value of the total fund, multiplied by an amount not to exceed 4%. The amount is calculated each year after the quarter ending September 30.   Endowed fund expenditures should not exceed the amount calculated each year after the quarter ending December 31.

It is the goal of the Board of Director’s to spend no greater than 5% annually of endowed funds (excluding those funds which mandate a spending rate) including the above referenced 4% pay out policy and Foundation expenses excluding investment manager fees. 

Provided, however, that the appropriation for expenditures in any year pursuant to the Policy and for Foundation expenses (not including investment manager fees) from an endowment fund shall not exceed an amount greater than five percent of the fair market value of the endowment fund, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than 3 years immediately preceding the year in which the expenditure is made. (This provision shall not apply to those endowed funds which mandate a spending rate.)

Special Project and other non-endowed funds, and Administrative and Operating Funds are not subject to this Spending Policy.

  1. Distributions will be made from the total return of the portfolio, including interest, dividend and realized gains. Interest and dividend payments will be reinvested as they are earned.
  2. Charitable grants will be pro-rated if the fund has been in existence for less than twelve quarters. Foundation fee assessments will not be prorated but will be levied for the first full month following the inception of the fund.

The payout rate percentage is subject to review by the Investment Committee annually and may be amended from time to time by the Board of Directors of the Foundation.

Fundholders of non-endowed funds (including Quasi-Endowed Special Project, Designated, Field of Inters, Pass-Thru, Administrative & Operating funds may request distributions of any amount, up to 100% of the balance of their fund less their annual administrative fees.)

 Approved by Board of Directors 11-24-20