To project the annual amount that a new endowment may distribute in revenue, the following calculation should be used:

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

To project the annual amount of an existing endowment, the calculation to be used is:

Current market value of endowment times actual distribution rate. See below for the actual distribution rate.

Actual distribution rate for September 30, 2008: 4.410%

Example:

If one wanted to know how much revenue would be distributed annually from a $25,000 endowment for a scholarship, the following calculation should be used:

$25,000*.94*4.410%=$1036

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.