Ohio University Foundation Spending Policy

The Ohio University Foundation Board of Trustees has adopted a spending policy, which provides at least four percent of the endowment value but not more than nine percent for expenditure. The base for calculating the percentage available shall be the three-year moving average value of the endowment fund subject to the following provisions:

1.   The three-year moving average value will be computed as of December 31 each year.

2.   The Higher Education Price Index shall be used as the inflation/deflation indicator for determining the amount of income available in excess of four percent for expenditure.

3.   If total return on investments (dividends, interest, and appreciation) exceeds four percent plus the Higher Education Price Index, funds available for expenditure shall be increased up to a maximum of nine percent.

4.   If total return on investments is greater than four percent, but less than four percent plus the Higher Education Price Index, the difference shall be returned to principal.

5.   If total return on investments is greater than nine percent plus the Higher Education Price Index, the difference shall be returned to principal.

6.   The executive committee shall determine the amount of income available in excess of the minimum four percent of the three-year average in consultation with the President and Treasurer.