What is Dartmouths current endowment utilization policy?
Beginning with the endowment distribution effective in fiscal year 2005, the Board of Trustees approved a revised distribution formula, consistent with the College’s overall endowment distribution philosophy to preserve intergenerational equity and to provide a stable distribution in support of the operating budget. This new distribution formula is designed to moderate the potential volatility of endowment distributions during periods of large positive or negative investment returns. Specifically, the new formula requires that the distribution be calculated with 70 percent based on the prior fiscal year’s distribution, adjusted by CPI; and 30 percent based on a pre-determined percentage of the four-quarter trailing average market value of the endowment.
