Distribution Policy for Endowed Funds

The Distribution Policy for endowed funds as to which the Community Foundation is attempting to preserve the purchasing power of the balance is determined by the Foundation Trustees on the recommendation of the Investment Committee in accordance with the Investment Objectives of the Foundation. Based upon current assumptions of long-term annual total returns, inflation, and expenses, that policy is currently 4.25% of the balance of such funds.  In order to dampen the volatility of such distributions, however, the 4.25% distribution rate is applied to an average of the balance over the most recent 13 quarters except under two circumstances:

  1. When a fund has been in existence for less than 13 quarters, the average balance will be computed over those quarters.
  2. When active fundraising is under way for an endowed fund, the organizers may request that no distributions be made until it is completed, at which time a new computation period will begin.

 

The first quarter used for any such average value computation will not be the quarter in which the fund was established and funded, but the first quarter thereafter.

Unless otherwise agreed, distributions are customarily made annually in January or July, but no earlier than one year after the fund is established.