The Foundation’s spending policy and investment strategy are designed to work together to provide a predictable stream of dollars for annual grantmaking to the region’s non-profits while also prioritizing the preservation of the inflation-adjusted value of the funds in the endowment so that the impact of future grantmaking can be as effective as it is today.
The current spending policy formula is calculated as follows: 5% of a trailing twenty-quarter average of the market value of the Corporate portfolio and separately of the Trust portfolio, provided that each of these averages fall between 4.25% (the floor) and 5.75% (the cap) of the respective portfolio market value as of the most recent calendar year-end. If the average is higher than the cap, the annual spending policy allocation from the portfolio during the year will be limited to 5.75% of the most recent calendar year-end market value. If it is lower than the floor, the annual spending policy allocation from the portfolio will be raised to 4.25% of the most recent calendar year-end market value.
Where the Hartford Foundation’s Dollars Were Spent in 2016:
* Does not include grants from agency endowments
** Includes operation of initiatives and special projects