March 31 Endowment Spending Bases

Published: April 23rd, 2008

Category: Memos

Paul A. Robell, Vice President for Development and Alumni Affairs

As you will recall, the endowment spending bases were adjusted upwards at September 30 and December 31. In January, the UFF Finance Committee approved a special additional increase, raising the ratio of spending base/market value to 90%. But as you also know, the investment markets have been very poor in the last quarter.

The analysis as of March 31 of spending base/market value ratios of the endowments indicates there will be no additional adjustments this quarter. With the volatile market due to the economic downturn being experienced by the United States, there is no assurance of future positive adjustments as well. Thus, as you prepare your budgets, please consider this and plan carefully for the use of the spendable dollars you receive from the endowment.

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