How is the payout rate on endowed funds determined, and how does it compare to other Universities?

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How is the payout rate on endowed funds determined, and how does it compare to other Universities?

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The Audit and Finance Committee of the Executive Committee annually reviews the endowment earning distribution process calculated on a 12 quarter rolling average of the market value of the portfolio. The rate for fiscal 2004-2005, for instance, was 6%. The Foundation returns 10% of the interest income to the principal to keep pace with inflation and to maintain a steady growth in money available to the fund sponsors. The Foundation seeks to avoid the extreme highs and lows in income that could damage the beneficiary program’s long-term viability.