Spending Policy. The rules governing how much of an endowment’s total return will be made available for spending in a given fiscal year. For example, the spending policy might say the annual spending allocation will be equal to 4 percent (4%) of the endowment’s average market value over the most recent three-year period. The 4 percent (4%) is known as the “payout rate.” The payout rate is decided on an annual basis by the CUF Board of Directors for the Clemson University Foundation and Clemson University endowments. State law governs the management of institutional funds. UPMIFA rules govern investment of the funds of charitable organizations and total return expenditure of those funds. faQ How soon can the program area receive annual income from the endowment? First, the endowment must meet any minimum requirements set forth in its fund agreement or by financial policy. If there are no minimum requirements, a payout will be generated for the second fiscal year after the endowment was created. If there are minimum requirements, a payout will be generated for the second fiscal year after the requirements are met. In other words, an endowment created and/or meeting all of its minimum requirements in fiscal year one would have a payout for fiscal year three. When will my endowment generate a full budget? Market factors greatly influence when an endowment will generate a full budget. Generally, an endowment’s payout is calculated seven months in advance of spending, based on the three-year average fund balance of the endowment. The three years that are used for the calculation are the three fiscal years prior to the time of the calculation. Therefore, a full payout will be generated in the fifth year after an endowment is fully funded. For this reason, many donors provide annual gifts to supplement the purpose of their endowment for this interim period. What can I expect Clemson to do for me? Two fundamental responsibilities accompany being the beneficiary of an endowment: (1) the responsibility to use the funds for the purpose(s) for which each endowment was established; and (2) commitment to appropriate stewardship, which entails communications with donors regarding how donations are making an impact on students and faculty. These responsibilities apply particularly to the specific department/unit and individuals benefiting from an endowment, since donors expect to hear from those who are most directly benefiting from the funding being provided. On an annual basis after the ...
Spending Policy. Quasi Endowed funds are not subject to the Foundation’s spending allowance for permanent funds; however a minimum of $50,000 must be maintained in the fund. Distributions Advisor recommendations on grant distributions will be considered if offered through a completed Donor Recommendation Form, submitted in writing, by fax, by e-mail or online through FundXpress. Grant recommendations should be of a minimum amount of $250 per grantee organization. Unless otherwise requested on the Donor Recommendation Form or in the establishing agreement, any distribution from a Donor- Advised Fund will identify the grantee organization and the name of the Fund from which the distribution is made. Grants of $25,000 or less to organizations described in Section 501(c)(3) and 170(b)(1)(A) of the Internal Revenue Code may be approved by the President/CEO of the Foundation. Recommendations for grants over $25,000 may have to await board approval at the next regularly scheduled quarterly board meeting. Donors will receive a quarterly fund statement, generally within 30 days of the close of the quarter, which provides a summary of a fund’s asset value and any activity in the fund.
Spending Policy. The Investment Committee for the Foundation has established an annual spending policy. The annual payout percentage is a maximum of 5% and will be applied to the fund’s average market value. The average market value is based on the ending balances for the preceding 12 quarters. This methodology should help to stabilize the year-to-year cash distributions that could be influenced, either positively or negatively, by the performance of investments.
Spending Policy. The rules governing how much of an endowment’s total return will be made available for spending in a given fiscal year. For example, the spending policy might say the annual spending allocation will be equal to four percent (4%) of the endowment’s average market value over the most recent three-year period. The four percent (4%) is known as the “payout rate.” The payout rate is decided on an annual basis by the CUF Board of Directors for the Clemson University Foundation and Clemson University endowments. Other rules may be applicable within the policy. Currently, a minimum amount of earnings and appreciation is required before an endowment is eligible to pay out. Additionally, an endowment is assessed an administrative management fee that is utilized in securing, raising, investing and administering endowment funds in accordance with policies and procedures of the Clemson University Foundation in effect at the time. The annual fee (currently 1.25%) is assessed on a quarterly basis to the beginning market value of the endowment. State law governs the management of institutional funds. UPMIFA rules govern investment of the funds of charitable organizations and total return expenditure of those funds. Types of Endowment Funds Permanently Restricted Endowment: An endowment created by a donor to exist forever. Term or Temporarily Restricted Endowment: An endowment created by a donor to exist for a specific period of time or until the occurrence of a specified event. For example, the donor may authorize the fund administrator to allow a portion of the corpus or principal to be used to launch a new program or to improve a program.
Spending Policy. Each year the Foundation calculates an amount available for distribution for all component funds, including Endowed Donor-Advised Funds. Currently, the spending policy is to distribute 4.5% of the average asset value over twelve trailing quarters, or the number of quarters since the Fund was established if less than twelve. The Foundation reviews this spending policy annually. Distributions Advisor recommendations on grant distributions will be considered if offered through a completed Donor Recommendation Form submitted in writing, by fax, by e-mail or online through Fund Xpress. Grant recommendations should be of a minimum amount of $250 per grantee organization. Unless otherwise requested on the Donor Recommendation Form or in the establishing agreement, any distribution from an Endowed Donor-Advised Fund will identify the grantee organization and the name of the Fund from which the distribution is made. Grants of $25,000 or less to organizations described in Section 501(c)(3) and 170(b)(1)(A) of the Internal Revenue Code may be approved by the President/CEO of the Foundation. Recommendations for grants over $25,000 may have to await board approval at the next regularly scheduled quarterly board meeting. Donors will receive a quarterly fund statement, generally within 30 days of the close of the quarter, which provides a summary of a fund’s asset value and any activity in the fund.
Spending Policy. It is anticipated that the money contributed to this fund will be granted out over a period of one to three years. Grant recommendations, by the donor advisor(s), can be made at any time in amounts of at least $250. Distributions Advisor recommendations on grant distributions will be considered if offered through a completed Donor Recommendation Form, submitted in writing, by fax, by e-mail or online through FundXpress. Grant recommendations should be of a minimum amount of $250 per grantee organization. Unless otherwise requested on the Donor Recommendation Form or in the establishing agreement, any distribution from a Donor-Advised Fund will identify the grantee organization and the name of the Fund from which the distribution is made. Grants of $25,000 or less to organizations described in Section 501(c)(3) and 170(b)(1)(A) of the Internal Revenue Code may be approved by the president/CEO of the Foundation. Recommendations for grants over $25,000 may have to await board approval at the next regularly scheduled quarterly board meeting. Donors will receive a quarterly fund statement, generally within 30 days of the close of the quarter, which provides a summary of a fund’s asset value and any activity in the fund.
Spending Policy. WCCF anticipates distributions from each fund every year, in amounts determined under WCCF’s Spending Policy, as amended from time to time, and the terms of fund agreements. Donors may, at the time they establish a fund, recommend that the fund be managed as a permanently endowed fund, as a long-term (but not necessarily permanent) fund, for a specified time (“term fund”), or as a pass-through or spend-down fund. Donors may also provide other directions for distributions, such as a term limit on the fund that no distributions be made until the fund reaches a certain dollar amount, or that a specified portion of investment returns be reinvested. All distributions are subject to due diligence review and must be approved by the Board. All funds are subject to the Variance Power, as noted above. Restrictions on Grants from Funds. Distributions from funds established at WCCF will be made only if they are consistent with WCCF’s charitable purposes and satisfy community needs. Distributions from funds will be made to organizations that are qualified Section 501(c)(3) public charities or governmental entities. Distributions from funds will not be made for memberships, pledges, sponsorships, tickets, or for any purpose that would otherwise provide a benefit to the donor or related party recommending the distribution. Distributions from funds may not be made to any individual (unless the distribution is from a Scholarship Fund) or to an organization for benefit of a specified individual. Distributions from funds will not be made for political campaign or legislative activities. Rules for Advisors (Donor-Advised Funds Only). If the donor establishing a Donor-Advised Fund appoints one or more advisors or successor advisors, only that donor may revoke or modify the appointment(s). If no successor advisors have been appointed by the donor, the acting advisors may appoint successor advisors, and the donor or the acting advisors may revoke or modify those appointments. All appointments, revocations, and modifications must be in writing, signed by the appropriate parties, and delivered to WCCF. In cases of two or more advisors, the donor or advisors shall appoint a chairperson. All communications with WCCF concerning grant recommendations will be through the chairperson. If multiple advisors make conflicting grant recommendations that are not promptly resolved, WCCF may independently initiate distributions from the fund.
Spending Policy. The annual spending for grants shall be five percent of a balance which is calculated by averaging the previous 12 quarters of a fund. This calculation will be done once a year, at the end of the year, and the resulting amount will be the grant amount available for the next year. The Spending Policy may be modified by the Foundation at its sole discretion and will be communicated to the donor annually. I acknowledge and agree that the Fund shall be held and distributed in accordance with the following terms and conditions:
Spending Policy. The Foundation anticipates distributions from each fund at least annually of an appropriate percentage of the fund’s market value, as determined by the Foundation’s Board of Directors (five (5) percent for 2005). In determining the annual distribution amount, the Foundation’s Board of Directors may consider the expected total return on the investments of the Foundation’s permanent funds, the desirability of maintaining the value of the Foundation’s permanent funds, and any other factors that it deems relevant.
Spending Policy. The Boston Foundation utilizes a Spending Policy to determine the amount available for annual grantmaking from its General Purpose, Field of Interest and Designated Funds. Call the Development Office for the current rate and information on how the Spending Policy is calculated.
