The Fredonia College Foundation Board of Directors agreed at its Oct. 25 meeting to increase the endowment spending rate from 4 to 4-1/2 percent, a welcomed adjustment that will benefit students beginning in 2014.
An additional $80,000 will be available to support scholarships and academic programming and activities across the campus due to the higher rate, which was made possible by the strong performance of endowment investments and an overall improving economy.
“Our goal is to put as much money into the hands of students and programming as possible,” said Betty Gossett, assistant executive director of the foundation.
The endowment spending rate determines the amount of money drawn from endowment investment earnings. Factors that also include expected inflation, return from income and appreciation of investments are examined by the board when it sets the spending rate. The previous 4 percent rate had been in place for four years.
The new spending rate will be applied across the more than 400 endowment funds managed by the foundation.
