Spending for good
The Mankato Area Foundation has chosen to implement a spending policy based on a percentage of portfolio smoothing term model, which provides the most consistent spending levels in perpetuity. The purpose of this spending policy is to establish the annual granting allocation for the Foundation. The Foundation is entrusted with the investments and management of the endowment and with carrying out the wishes of its donors in the best interest of the Greater Mankato community.
Granting for purposes of the spending policy will be defined as grants, gifts and scholarships. The spending policy is designed to:
- Preserve purchasing power resulting in perpetuity in spending
- Allow for reinvestment of excess earnings
- Provide a means for future board members to follow a consistent path for spending and budgeting
- Allow for granting during periods of market decline providing the ability to meet long term mission goals of the Foundation
- Define a quarterly monitoring by the Finance Committee with recommendations to the Investment Committee.
Too see a copy of our Spending Policy, click here.
