Community Foundation of St. Joseph County

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Investment Objectives

Investment Objectives

The Community Foundation pools individual endowed funds for investment purposes. Quarterly, each is allocated its pro rata share of the earnings.

The primary investment objectives of the Foundation are to:

  1. Preserve the real power of the principal, so that the value of gifts made to Community Foundation funds is not diminished over time by inflation;

  2. Provide a growing stream of earnings for grants, ideally keeping pace with inflation, so the real value of the support provided to charities each year does not diminish.

Community Foundation of St. Joseph County, Inc. Investment Objectives, Policies and Procedures (PDF)

Thanks to the Leighton Endowment for the Advancement of Philanthropy, established in December 1997, the Community Foundation now waives its customary 1% fee on most endowed funds, leaving it to fuel future growth. Now the Community Foundation may hope not only to preserve the real value of each fund, but to help each fund grow more powerful as the years pass.

Net Investment Return Objective: Inflation plus 5%. Earnings in excess of grants and expenses are reinvested in each individual fund to provide growth and protection from inflation.

Spending Policy: Five percent (5%) of a 3-year moving average of quarterly market values.

Each April the Foundation calculates the amount of earnings from each fund available for grants to charity. This policy seeks to ensure that only real earnings (those in excess of inflation) are expended.