How much may be spent from an endowment?
Unless the donor specifies a particular percentage or dollar amount that is to be spent periodically from the endowment, the governing body of the foundation is responsible for determining the amount that may be spent currently from an endowment. In doing so, the board must act reasonably, and must take into account the duration and preservation of the endowment fund, the purposes of the institution and the endowment fund, general economic conditions, the possible effect of inflation or deflation, the expected total return from income and the appreciation of investments, other resources of the institution and the investment policy of the institution.
