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Policies & Procedures

SPENDING POLICY :                                                                      

The distribution rate of endowment accounts is based on investment returns and is annually determined by the Audit Committee and approved by the Board of Directors. In an attempt to maintain inter-generational equity, the Foundation will take into account a rate of inflation when calculating the distribution rate. Generally, the distribution rate is applied to the estimated fair market value of each fund at the beginning of the fiscal year. The Foundation may review individual accounts determining if the approved distribution rate would reduce available amounts below prudent reserve thresholds and if so, reduce or freeze the approved distribution. The Foundation will attempt to maintain a consistent distribution annually. During the year the Executive Director may approve amounts in excess of the approved amounts providing there are sufficient funds in excess of corpus and a valid need presented in writing. Periodically, a report should be provided to the committee that oversees the spending policy informing them of accounts approved for expenditure exceeding the distribution amount.

The Foundation receives designated gifts having permanent restriction on their use. Fluctuations in marketable investments are expected in the short term and the Foundation will use wise spending policy decisions to maintain funds in excess of the permanently restricted balance.

Committee Notes

2011-2012 the Audit/Finance Committee approved a 4% distribution rate as long as that amount was not more than 20% of the available balance. There may be exceptions on individual endowments based on a review of the circumstances. The estimated fair market value at the time of distribution was calculated using a 2% growth rate.

2012-2013 the Audit/Finance Committee approved a 4% distribution rate as long as that amount was not more than 20% of the available balance. There may be exceptions on individual endowments based on a review of the circumstances. The estimated fair market value at the time of distribution was calculated using a 4% growth rate.