To project the amount needed for a new endowment to generate a specific amount of revenue distribution, the following calculation should be used:

Amount of distribution divided by the actual distribution rate divided by the supplement fee. See below for the actual distribution rate and an example of this calculation.

Actual distribution rate for December 31, 2009: 4.053%

Example:

If one wanted to know the size of an endowment needed to generate $6,000 annually for a scholarship, the following calculation should be used:

$6,000 divided by 4.053% divided by .94 = $157,488

Please remember this is only an estimate. The endowment distribution rate changes each quarter due to the changes in the market value of the endowment investment pool.