Financials

The Foundation’s spending policy (annual allowed endowment spending on grants, scholarships, programs, and operations) is three and a half percent (3.5%) of the 20-quarter average net asset market value. Together with our investment policy, this level of spending is set to ensure that the value of our endowed funds grows over time at a rate which exceeds the rate of inflation.

To satisfy our organizational mission, the Foundation has established both a total return investment strategy and a spending policy. A spending policy is essentially a grant making budget aimed at satisfying two goals – one, to ensure that the value of our endowed funds grows over time at a rate which exceeds the rate of inflation, and two, to maximize the grant dollars provided to meet our community needs. This, of course, applies to the largest of our endowed funds which was created through the sale of Barberton Citizen’s Hospital in 1996, and all endowed funds created by other donors since the Foundation’s inception.

For all endowed funds, the amount available for spending each year is set to that year’s spending policy as approved by the Board of Directors and calculated at the beginning of each year. Donors who have established endowed funds with the Foundation are permitted and encouraged to recommend the authorization of grants and scholarships made from their funds.