FOUNDATION ENDOWMENT SPENDING POLICY

The Endowment Spending Policy for each Foundation is determined by the Board of Trustees of the Endowment Fund and the Foundation Executive Committee. The purpose of the policy is to minimize annual fluctuations in available funds for programs supported by endowments.

The policy permits annual spending from earnings (including realized gains) by an approved percentage multiplied by the average fair market endowment balance over a twelve quarter period. The current approved spending percentage is 4%.

Endowment Funds and their related spending accounts are administered according to the requirements set forth by the Donor Agreement. Funds distributed that were not needed for current spending may be returned to principal (if allowed) to increase potential future earnings. Spending accounts are permitted to earn additional interest on average positive fund balances during a quarter.

Spending amounts are entered as a “Budget” amount into the Financial Reporting System (FRS) for each appropriate spending account to facilitate department administration of funds.