Photo of C.B. Kern THE CARL B. KERN FUND
of The Dayton Foundation

established 1987

1401 S. Main Street, Suite 100  *  Dayton, OH 45409
(937) 222-0410  * * *  FAX: (937) 222-0636

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Determination of Annual Distribution Amount . - updated March 1, 2021

From a Dayton Foundation letter dated May 19, 2017:

"As part of being a responsible steward in overseeing the investments of all Dayton Foundation funds, we annually review our investment policy and the method for calculating the administrative assessments for all funds and the distribution amounts from endowed funds. In making these calculations, we have been using the fund value average over 12 quarters ending with March 31 of the current year.

Over the next two years, the Foundation will phase into a practice of calculating these amounts based upon a fund value average over 20 quarters instead of the 12 quarters. This change to a longer timeframe for the calculation takes the highs and lows out of the market volatility and makes the distributions and assessments from your fund more predictable for you. This means the value of your fund will be better positioned for future growth. The first phase of this new calculation will go into effect on July 1 with a 16-quarter average, followed by a 20-quarter average starting July 1, 2018."

Additional information by email, confirmed by The Dayton Foundation on March 1, 2021:

"At the end of the 1st quarter each year (3/31), the total amount of deposits (contributions) and withdrawals (grants) over the prior 12 months is assessed, and if the net deposits/withdrawals is plus or minus 10% of the 3/31 fund balance from the previous year, a "restart" occurs where the calculation of the 4 percent distribution will occur beginning with the quarter in which the plus or minus 10% difference occurs. Deposit and withdrawals do not include investment income, fees, realized gains and losses, and unrealized gains and losses."

The calculation occurs at the end of March for the *following* fiscal year (July-June). Because the Kern Fund check is usually presented to Camp Kern in June, this means that there is an elapsed time of about 15 months between the calculation of the amount and the check's actual distribution. The Carl B. Kern Fund Advisory Board is notified of this amount and may act upon it - for example, rounding it up or down - to make a final determination of the amount to be distributed from the Fund. Depending on the difference between the calculated amount and the Advisory Board's recommended amount, approval from The Dayton Foundation's Governing Board may be necessary.