Endowment Fund Spending Policy

THE CLIFTONDALE FOUNDATION INC.

ENDOWMENT FUND SPENDING POLICY

Adopted - April 16, 2016

Revised July 2016


The Percentage used to calculate the Cliftondale Foundation – Church Endowment Fund annual payout is 50 percent of the applicable federal rate as defined in the internal Revenue Code on January 1st of ever year; however, the percentage shall never be lower than 3 percent or greater than 6 percent.

In years in which there is excessive growth in the fund, the Foundation reserves the right to make additional distributions of income and capital gains beyond the 6 percent ceiling by a two-thirds (2/3) vote of approval of Board members.


The percentage determined shall be applied against a rolling 3-year (12 quarters) average of the fair market value of the fund as determined on the first business day of the past 12 quarters income each calendar year.

The Foundation of Directors Permanent Endowment and Planned Giving Committee will establish and/or set up two main funds to make distributions and/or spend. They are:


DESIGNATED or RESTRICTED (Endowed or nor Non-Endowed)

  • Funds can only be used for specific ministries, programs and or per the donor wishes. Capital Development and maintenance can also be designated and/or restricted

UNDESIGNATED/UNRESTRICTED (General, Endowed & Non Endowed)

  • Funds may be used according to the particular needs of the Church or Foundation. They may include but not limited to the following:
  • · General Undesignated (use determined by the Foundation/Committee to carry out  mission).
  • · Unbudgeted and/or under-funded Church Capital improvement and property maintenance.
  • · Scholarships 
  • · Mission Projects for youth (State, National and International that support the local  Church.
  • · Youth and Children Ministries – At the Clift Young People Academy.
  • · Worship, Nurture and Outreach Ministries.