Spending for the Future
The Columbus Jewish Foundation is akin to an individual whose IRA or 401K retirement plan must last forever. The Foundation’s Investment Committee faces unique challenges:
Allow an adequate amount of spending each year;
Take inflation into account;
Maintain spending during difficult periods;
Allow spending to increase during good times; and,
Do not spend so much that the portfolio’s purchasing power erodes.
The Foundation’s Investment Committee, chaired by Bob Keidan, takes a long-term perspective. It met this week to review the asset allocations and performance of the Foundation’s main portfolio. Following its assessment of the capital market environment, the Committee agreed to maintain the Foundation’s current 4% endowment spending rule policy on permanent funds.