Foundation Spending Policy
Our spending policy follows a total return approach. Rather than distributing net income, a total return model allows spending at a fixed rate of total market value, including realized and unrealized gains. This policy enables our investment managers to build overall investment return, incorporate growth and income strategies, and lower the impact of market fluctuations. Over the long term, this disciplined approach builds the Foundation’s assets and consequently, increases our grantmaking capacity.
Because of these prudent policies, funds of the Foundation have greatly increased in value. In just the last decade, the endowment and its component funds have more than doubled in total value.
Greater Worcester Community Foundation invests its permanently endowed funds, the majority of its donor advised funds and agency funds in a commingled pool designed to preserve and grow principal over the long-term.
A board-approved investment policy governs investment objectives, asset allocation and spending rate.
Total pooled investments: $118,452,258
Total foundation investments: $133,892,019
Quarterly Update: December 31, 2014
|GWCF Invested Fund
|65% S&P 500/35% BC Agg
All returns are shown net of investment fees. Actual Index is a custom benchmark of indices based on the weighted allocation of each asset class and measures the return of passive index portfolios.