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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.

effective

December 1986

revised

June 2022

Reviewed

April 2024

Responsible Office

Budget Planning & Analysis

Approval

Trustees

The Policy

  1. The Office of Budget Planning & 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 otherwise stipulated by the donor.