The College’s spending policy is designed to meet two objectives:

1. Balance the need for current income from the endowment, to provide resources for the current generation, with the need to maintain the purchasing power of the endowment in perpetuity, to provide resources for future generations.
2. Ensure reasonable stability in annual payout from the endowment to the College, so that budgets and programs are not subjected to substantial swings in available funds. Payout should increase regularly and not be reduced from year to year except under severe financial strain. Nor should the payout be allowed to increase beyond necessity in a given year. The spending rule must determine, within a narrow range, the endowment payout at least six months in advance of a budget year.

The payout from the endowment will increase by 4.25% annually, subject to the condition that the amount is between 4.0% and 5.3% of the 12-quarter average trailing market value of the endowment.