1605 Spending Rule

Document purpose

The University’s endowment spending rate policy balances the objective of maximizing budgetary support to endowed programs while ensuring that the purchasing power of the endowment is protected against inflation. The actual payout in any given year is determined by a formula designed to smooth the impact of short-term market moves on endowment payout.


December 1986


March 2011


June 2021

Responsible Office

Budget Planning & Analysis



The Policy

  1. The Office of Budget and Management Analysis, in consultation with the Budget Steering Committee, is responsible for recommending the annual effective payout rates on financial aid endowments and non-aid endowments to the Trustees’ Committee on Budget and Finance.

    All endowment funds will be subject to the spending rule policy unless stipulated by the donor.