Endowment Spending Policy

The Wayne State Foundation Executive Committee approves policies to determine the amount of the endowment earnings to annually distribute for scholarship and other programs. The current policy sets the payout rate up to 4% of the average market value of the endowment fund over the prior three fiscal years. The executive committee has authorized the assessment of minimal fees to address the costs associated with raising funds, managing investments and other administrative functions. Earnings in excess of the payout are used to grow the fund over time, which will generate larger awards in the future. Our goal is to provide predictable streams of scholarship and program support for Wayne State College while allowing growth in the endowment to preserve purchasing power in the long term, a concept known as intergenerational equity.