Endowment Earnings
There are five high points to know, contact Lisa Eslinger at ISU Foundation with additional questions on earnings:
- Earnings are based on the market value of the endowment.
- Earnings are made available on the first day of each quarter.
- The quarterly calculation approximates 1.25% of the market value of the endowment, hence the "5% annual spending policy".
- A smoothing calculation allows for less volatility in the annual earnings.
- The amount available for spending should not vary significantly from year to year.