This policy refers to the protocol the Foundation uses to determine the annual available grantmaking distribution from its permanently endowed funds. It is developed to facilitate the Foundation’s dual responsibility to pay out charitable distributions and to perpetuate endowments entrusted to it by donors.
This policy has four primary goals:
- To protect the endowed assets to last in perpetuity
- To grow the assets overtime
- To provide a smooth and predictable flow of distributions to charitable beneficiaries
- To support the achievement of the “Total Return Goal” as set forth in the Foundation’s Investment Policy Statement – “The primary goal is to provide a total return that after investment expenses should equal or exceed an average annual rate of return of the Foundation’s spending rate (historically 4-5%) + inflation (as measured by the CPI-U) plus a 1% premium.”