Spending Policy for Annual Distribution from Funds

The value of an endowed fund is that it will continue in perpetuity and funds will be available every year for grants and scholarships. WCCF’s spending policy is established by the board of directors and is currently 4.5% of the fund balance calculated against a rolling average of the past 20 quarters (5 years). This “smoothing technique” allows us to maintain a relatively consistent pay-out or distribution amount each year regardless of current year investment performance or volatility in the markets. Our board believes this spending rate is sustainable over the long-term.

Donors who prefer a different annual distribution rate may request such at the time of their donation and when they complete the fund agreement paperwork. Donors who establish non-endowed (e.g., spend down) funds are not subject to this spending policy.

Administrative Fees

WCCF assesses an annual administrative fee of 1% on the fund balance of each of its permanent funds to cover its own operating expenses. This is a standard fee in the community foundation field. The administrative fee for a scholarship fund varies between 1% and 2% depending on the complexity of scholarship program administration for that fund. Non-endowed funds are charged a one-time processing fee at the time of the donation.

Real estate and other non-liquid assets are assessed a 2% fee. Large and complex estate gifts are assessed fees appropriate to cover legal, accounting and other expenses associated with settling these gifts.

Link to Fee Schedule