Limitation on Spending Clause Samples

Limitation on Spending. The Foundation recommends that a fund not participate until it has been in existence for a minimum of four calendar quarters. This waiting period allows the fund to appreciate and make distributions from the earnings. The Foundation suggests that if the 12 quarter rolling average market value of an account, on the date for which a distribution is being determined, is less than the fund’s Historic Gift Value, the suggested Distribution Rate be reduced or distributions suspended at the discretion of the endowment, investment, or finance committee.