Endowment net asset composition by type of fund as of June 30, 2023, is as follows:
| Without Donor Restrictions | With Donor Restrictions | Total Net Endowment Assets | |
|---|---|---|---|
| Board-Designated Endowment Fund | $ 1,619,920 | $ - | $ 1,619,920 |
| Original Donor-Restricted Gift Amount and Amounts Required to be Maintained in Perpetuity by Donor Accumulated Investment Gains Total | - - | 5,500,507 | 5,500,507 |
| $ 1,619,920 | $ 7,752,300 | $ 9,372,220 |
From time to time, certain donor-restricted endowment funds may have fair value less than the amount required to be maintained by donors or by law (underwater endowments). The Foundation has interpreted UPMIFA to permit spending from underwater endowments in accordance with prudent measures required under law. There were no such deficiencies as of June 30, 2023.
The Foundation spending policy is to distribute an amount at least equal to 3-5% of a moving sixteen quarter average of the fair value of the endowment funds. Accordingly, over the long term, the Foundation expects its spending policy to allow its endowment assets to grow at an average rate of 3% annually. This is consistent with the Foundation's objective to maintain the purchasing power of endowment assets as well as to provide additional real growth through investment return.
Changes in endowment net assets as of June 30, 2023, are as follows:
| Without Donor Restrictions | With Donor Restrictions | Total Net Endowment Assets | |
|---|---|---|---|
| Endowment Net Assets, Beginning of Year | $ 1,596,904 | $ 7,062,436 | $ 8,659,340 |
| Contributions | - | 135,216 | 135,216 |
| Interest and Dividends | 90,777 | 136,243 | 227,020 |
| Realized and Unrealized Gains | 363,989 | 571,373 | 935,362 |
| Other, Net of Investment Expense | - | (131,467) | (131,467) |
| Amounts Appropriated for Expenditure | (285,735) | (11,741) | (297,476) |
| Reclassifications | (146,015) | (9,760) | (155,775) |
| Total | $ 1,619,920 | $ 7,752,300 | $ 9,372,220 |
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