Distribution Policy

The Macalester endowment shall distribute spendable income equivalent to:
Fifty percent of the allowable draw per unit of the previous year, increased by 2.0%; plus
Fifty percent of the long-term draw rate of 5.0% applied to the 16 quarter market value average of the endowment unit value for the period ending November 30 of the fiscal year preceding the budget year.
After computing the proposed draw, the draw amount per unit shall be compared to the unit value of the endowment on the November 30 date; the proposed draw per unit shall not be more than 6.0% or less than 4.0% of that value.
The Administration and Finance Committee of the Board will allocate the spendable amount to operating and/or capital budgets, or to a spending reserve.