| Spending Policy
The Board of Directors of the Foundation has determined that the annual spendable amount distributed through each fund is five percent (5%) of the fund’s average balance, unless otherwise stated.
The Board of Directors considers these factors in determining the annual spendable amount:
- Long-term preservation of charitable funds
- Expected and reasonable total return on the investments of funds
- Reasonable cost of investing and administering funds
- Effects of inflation
- Price level trends and general economic conditions
- Payout trends in the community foundation field
The donor, upon establishing the fund, chooses to follow the Foundation’s standard spending policy or to select a variation of that standard policy as described below:
- Quasi-Endowed Fund: Entire balance of the fund is available for distribution; payout may be made even if principal is disturbed provided the corpus does not fall below the minimum required fund balance amount (see Minimum Endowment Fund Balances in this Section II); ensures that a consistent amount is available every year for payment to charitable causes; invested for long-term growth (majority of funds administered by the Foundation are this type)
- Endowed Fund: A permanent asset of the Foundation where the principal is completely preserved; no payout is made if such payment disturbs principal; invested for long-term growth
- Non-Endowed Gift Fund: Entire balance available for distribution; invested for the short term to provide liquidity
For further information, please refer to the Foundation’s Donor Guide
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