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  3. How are endowment spending budgets calculated?

How are endowment spending budgets calculated?

Programmatic spending will be 4.0% of the average market value per unit of the long-term investment pool for each NCSIF Participant computed over the previous twenty quarters, which results in a spending rate per unit. The spending rate per unit is then multiplied by the number of units owned by each endowment as of the prior fiscal year end.

Programmatic spending budgets for next fiscal year will be determined each fall for fully funded endowments as of the prior fiscal year end, and NCSIF Participants will be notified of these budgets prior to the December holiday break. Spending budgets for new endowments that are UPMIFA compliant and are established during the current fiscal year and for distinguished professorships that receive Distinguished Professors Endowment Trust Fund (DPETF) matching from the UNC System during the current fiscal year will be computed and communicated to campus by fiscal year end.

For the complete spending policy statement, please visit the 
Endowment Spending and Distribution Policy Statement
.

Updated on August 26, 2020

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