In determining the amount of the fund to be spent, the foundation shall determine what is prudent for the uses, benefits, purposes, and duration for which the fund is established. The amount to be spent from an endowment fund each year is calculated within a range of 4.5% to 5.5% of the average of the fair market value of the fund over the previous 20 trailing quarters ending September 30 of the immediate prior year. The distribution amount is used for both the amount available to grant from each fund, as well as administrative fees charged to each fund. Amounts available to grant are calculated by subtracting the administrative fee from the total calculated distribution amount.
For new funds, distributions are available in the first fiscal year following the fund’s one-year anniversary, and will be calculated within the range of 4.5% to 5.5% of the trailing average of the number of quarters the fund has been in existence until it reaches 20 quarters.
For funds with donor-imposed restrictions which limit distributions to interest and dividends, the valuation period is 12 months ending September 30 of the prior year.