ACT's spending policy relates to the amount available for grant distribution from individual funds. ACT works on a total return spending policy that is designed to maintain and over time, increase the purchasing power of funds, providing a relatively steady and predictable level of grantmaking.
The current spending policy for ACT's permanent funds (presently 5%) is set by the Board based on the average market value of each Fund's assets, including income, realized, unrealized appreciation and principal, at the end of the trailing twelve calendar quarters. This rate may be adjusted from time to time depending on investment performance or economic conditions. Unless otherwise restricted, we prudently and consistently administer all Funds within the requirements of New York Prudent Management of Institutional Funds ACT (NYPMIFA). Our spending level is based on long-term performance trends, thus avoiding major fluctuations. For certain funds the Board may approve a different rate, depending on donor objectives.