Effective with fiscal year 1987, an annual management fee of one percent of principal to support Foundation operations was authorized on all invested accounts including the endowment pool. Prior to fiscal year 1988, all income earned, net of the Foundation management fee, was distributed to the participating accounts. Participants had the option of electing to reinvest the income in the endowment account. Endowment pool participants could withdraw any amount at any time from the endowment principal, if such withdrawals were permitted under the terms of the fund agreement. Beginning with fiscal year 1988, the endowment pool has been operated under the total return concept.
Expenditure is limited to a percentage of the market value.
For 1991 and subsequent years, a three-year moving average market value was used. If earned income is not sufficient to cover the expenditures, the amounts will be taken from accumulated gains. If income exceeds the amount expended, the excess remains in the pool and increases market value of each account.