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
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."
Feb 15th, 2018 email from DZ: "For FY2018, we took the average rolling 16 quarters fund balance ending at the March 31, 2017
quarter. So going back 16 quarters from that point, (see below) we would start at 6/30/13 and
calculate the average and multiply by 4%. The distribution for FY2018 was $5,690.94. As you
know the grant request that we received was to distribute $6,000. Beginning in FY2019, TDF we
will calculate based on a 20 quarter average ending at March 31, 2018.
Keep in mind Stuart that whenever the fund balance is increased or decreased by more than 5%,
the calculation will reset with the quarter in which the over/under 5% has occurred, so with
the Salisbury estate gift coming in July 2017, the FY2019 distribution calculation will reset
and start with the quarter ending 9-30-17. We will average the 3 quarters (9-30-17, 12-31-17
and 3-31-18) and multiply that by 4%. So, FY2019's distribution amount available will
probably be in the range of $14,000-$15,000."
June 14th, 2018 email from DZ: "The FY2019 distribution amount for the Kern Fund is $14,896.47.
The fees are 1.2% on first million and then .45% fee on remaining value over $1M. "
October 24th, 2019 email from DZ: "Credit Cards fees are charged 3% no matter
what credit card is used."
February 20th, 2020 email from DZ:
"The +-10% quarter is not quarter to quarter but for the
12 months between 3/31 of prior year to 3/31 this year. If the fund's balance at 3-31-20
is +-10% from the 3-31-20, it will reset at the quarter that this changed. That will
definitely happen and if you get many donations from your mailing in this current quarter,
it may just reset with the 3-31-20 balance. Looks like you will be near $18K for the FY2020 distribution."
February 10th, 2021 email from CD:
"A reset occurs when there is a single addition or withdrawal greater than 10%. The last
time that we restarted the clock for this fund was 9/30/17. That was due to the July 2017
contribution of $203,000. Increase in value since then has been from smaller
contributions and market value appreciation. Barring any large contribution or withdrawal
prior to March 31, there will be no restart this year.
The FY 21 distribution was calculated on an 11 quarter average (11 quarters starting at
9/30/17 and ending with 3/31/20). The FY 22 distribution will be calculated on a 15
quarter average (add 4 quarters). Using the 12/31/20 balance for the 3/31/21 balance, the
FY 22 distribution should be about $16,240."
February 12th, 2021 email from CD:
"'The report that I run shows me the % change due to deposits and withdrawals. So in his
example, a fund with a starting balance of $500,000 would be restart whether a single
$50,000 contribution came in or several totaling $50,000 came in.' So, it doesn't have to
be just a single contribution, but it does have to be a 10% change."
- Blue Mountain Community Foundation - How grant amounts are calculated
"How grant amounts are calculated - The spendable amount is based on the 12-quarter
rolling average of the market value of the endowed portion of each fund, ending June 30
of the current year. If the fund does not have a 12-quarter history, it is averaged
on the number of quarters it has been with the Foundation."
- Community Foundation of Bloomington and Monroe County - Endowed Fund Distribution Policy
"The FY 2014 spending rate has been established by the board to be 4.5%.
This spending rate will be applied to the average fund balance for the prior 16 quarters
as of March 31, 2013 to determine spending levels for the 2014 fiscal year, which begins on July 1, 2013."
- Community Foundation of Westmoreland County - Spending Policy & Administration
"Depending on the fund type, the spending policy rate ranges from 4 to 5 percent of
a rolling 12 quarter average of the principal market value of each fund. Each Sept. 30,
the grant-making budget for every fund is calculated for the following year."
- Community Foundation of Howard County - FAQs
"How is the amount available for grantmaking from a fund determined? - The Community
Foundation of Howard County uses the Total Return Concept, allowing a fund to benefit
from both income and capital appreciation.The present spending policy is 4%, calculated
on a past twelve quarter average of the fund's market value determined as of December 31 each year."
- Rochester Area Community Foundation - Spending Policy
"We have an approved 'Spending Policy' that determines the amount that can be granted out each year.
Our spending policy allows 5% to be spent, but rather than just a straight 5%, it is actually 5% of a 20-quarter rolling average."
- Delaware Community Foundation - Endowment Calculator
- Oregon Community Foundation - Endowment Partners Handbook
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.