5d: Endowment Spending Policy

  1. Statement of Purpose
    The purpose of this Endowment Spending Policy is to set forth the policies that shall guide the Foundation Board in distributing funds from the endowment for spending in accordance with donor designations, and for administrative and investment management fees of the Foundation.
  2. General Principles
    1. This policy is in accordance with the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as enacted in Oregon, specifically ORS 128.322, Appropriation for expenditure or accumulation of endowment fund. This statute provides that the Foundation may appropriate for expenditure so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes and duration for which the endowment fund is established.
    2. In determining the level of appropriation (spending) from endowment funds, the Foundation Board balances the needs of current College students and programs with those of the future in order to provide inter-generational equity. The Foundation Board considers the following factors:
      • The duration and preservation of the endowment fund
      • The purposes of the Foundation endowment fund
      • General economic conditions
      • The possible effect of inflation or deflation
      • The expected total return from income and the appreciation of investments
      • Other resources of the Foundation
      • The investment policy of the Foundation
  3. Roles and Responsibilities
    1. These policies are approved by the Foundation Board and are regularly evaluated with any changes approved by the Board.
    2. These policies are communicated to stakeholders, including donors and the College, and are implemented by the Foundation staff.
  4. Endowment Spending Policies
    1. True Endowment Distributions. The Foundation Board shall have the authority to annually distribute up to five percent (5%) of the total endowment fund market value (principal and interest), calculated on a three (3) year rolling average. Distributions will be limited to up to 25% of the accumulated interest earnings account at the time of the calculation. The calculation will be performed prior to the opening of the scholarship cycle.