– 40% – 70% Equities
– 20% – 55% Fixed Income
– 0 –15% Short-term Reserves
5% of contributed amount + 5% of 12-quarter average of accumulated appreciation (not to erode principal balance).
* Typical LAF Endowment agreements stipulate the funds must remain invested for three (3) years before a payout is calculated or made. Payouts can only be made from the accumulated income, allowing the principal to remain in perpetuity.
Honoring Donor Wishes
LAF will work to honor donor wishes regarding the investment and distribution of endowed funds. This will be done on a case by case basis.
Should a donor request an investment and/or distribution strategy for their endowed fund that falls outside of the approved LAF Investment/Distribution Policies, the request will be submitted in writing to the LAF Finance Committee for review. The Finance Committee will then provide a recommendation to the Board of how the fund will be invested according to donor wishes.
Investment/distribution strategies for endowed funds that do not follow LAF Investment/Distribution Policies must be approved by the Board.