Spending Policy

EmmaSchwarz
EmmaSchwarz Posts: 2 ✭
Conversation Starter Third Compass Anniversary 10-Year Anniversary 5 Likes
in Finance & Operations

Hi everyone,

We are exploring options to offer underwater spending (eroding their principal balance) for our endowment funds. I was wondering if anyone has spending policy you are willing to share.

There seems to be different limits on what percentage of their principal can be eroded etc.


Thank you,

Emma

Comments

  • JohnnaMartinez
    JohnnaMartinez Posts: 17 ✭✭✭
    Groundbreaker Third Compass Anniversary 10 Comments Grant Lifecycle Manager (GLM)
    edited December 2022

    Hi @EmmaSchwarz,

    Wondering if you were able to find any answers to your question on underwater spending? With the markets this year we are looking into a Spending Policy or modifying our existing policy to address this.

    Thanks,

    Johnna

  • MaryAnnToboz
    MaryAnnToboz Posts: 1 ✭
    First Comment CSuite

    We are interested in this topic, too. Thanks!

  • EmmaSchwarz
    EmmaSchwarz Posts: 2 ✭
    Conversation Starter Third Compass Anniversary 10-Year Anniversary 5 Likes

    Hi Johnna and MaryAnn - We are allowing underwater spending as long as the nonprofit board signs off on it.

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