Distribution Policy for Endowed Funds

Donors who want their gifts to last beyond their lifetime can establish Endowed or Permanent Funds from which only a limited amount of money will be spent for charitable use each year. That amount is currently 4.5% of the average market value of the fund over the prior full thirteen quarters. This percentage is established and updated periodically by the Board of Trustees.

By limiting the yearly distribution, the Trustees attempt to maintain each endowed fund’s real value against inflation for the future needs of the community. No one, of course, can guarantee such preservation in the face of the uncertainty of the financial markets, the economy, and inflation. However, this distribution rate provides the opportunity to grow the fund to meet the current and future needs for which it is intended.

Although the distribution policy dictates the amount available for distribution, donors can recommend the charities to which distributions are made.

For those permanently endowed funds for which fundraising is actively being maintained or for which distributions have not yet commenced, the 13 quarter average calculation will commence, as determined by the donor, on the first full quarter that either distributions begin or fundraising has effectively been completed.

A new 13 quarter average market calculation will begin if any new gifts are received in a quarter that equal 20% or more of the existing fund’s current principal prior to that gift.

Distributions from funds that are not permanent are subject to other limitations.