Once the pledge is fulfilled for the endowed fund you’ve created and the fund balance
exceeds the fund corpus (the sum of all contributions, payments and matches made to
the fund since its inception), an allocation amount is possible. The allocation amount
for the upcoming academic year is set once per year as of December 31.
If the allocation, as calculated under the University’s spending policy, would reduce
the fund’s market value as of December 31 to an amount less than its corpus value,
the award will be limited to the difference between corpus value and the December
31 market value. If the fund’s market value as of December 31 is less than its corpus
value, no allocation will be available. University policy forbids erosion of the corpus
of an endowed fund by deficit spending. The University’s endowment expenditure rate
is established by its Board of Trustees. Currently, it is the average of the preceding
12 quarters as of the preceding December 31, multiplied by 4.5%, less administration
fees.