FUND DISTRIBUTIONS

PRESERVING CAPTIAL 

The Community Foundation’s objective is to achieve a total return that exceeds the sum of:

• The annual distribution rate

• Rate of inflation

• The cost of portfolio management.

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DISTRIBUTION RATE

The current distribution rate of the North Lee Community Foundation is 4.5%. This decision was based on careful consideration of three key factors:

• Market Forecasts

• Understanding that a distribution rate of 5.0% would not enable the funds to realize the North Lee Community Foundation’s investment objectives.

• A desire to align the North Lee Community Foundation’s distribution rate with those of the majority of community foundations nationally.
   

DISTRIBUTION CALCULATIONS:

• If the gift is received in the 1St quarter, the distributable amount on December 31 is x 100% x 4.5%.

• If the gift is received in the 2nd quarter, the distributable amount on December 31 is x 75% x 4.5%.

• If the gift is received in the 3rd quarter, the distributable amount on December 31 is x 50% x 4.5%.

• If the gift is received in the 4th quarter, the distributable amount on December 31 is x 25% x 4.5%.