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Resolutions of
The Board of Trustees

Lincoln University, PA
 

RESOLUTION 443
March 23, 2013

   
ENDOWMENT FUND SPENDING AUTHORIZATION                      RES443_032313
JUNE 30, 2013
    
 
  

WHEREAS, The Board of Trustees of Lincoln University has elected to be governed by the provisions of Section 5548(c) of the Pennsylvania Non-profit Corporation Law of 1998, as amended, with respect to the endowment funds held by the University; and
 
WHEREAS, The provisions of Section 5548(c)(3) provide that if an election is made to be governed by that subsection, the term “income”, for the purposes of the endowment funds, shall mean a percentage of the value of endowment fund assets as the Board shall select annually, after determining that the percentage selected is consistent with the long-term preservation of the real value of the assets; provided, however, that the percentage selected shall in no event be less than 2% or more than 7% per year; now therefore, it is hereby
 
RESOLVED, That pursuant to Section 5548(c) (3) of the Pennsylvania Non-profit Corporation Law of 1998, as amended, and for the fiscal year ending June 30, 2013 the Board of Trustees hereby determines that endowment fund income shall be 2.25% of the value of the endowment fund assets, to be determined in accordance with the provisions of Section 5548 (c) (5), using the value of endowment fund assets on December 31, 2012 and averaged over a period of three (3) preceding years; provided however that if any assets have been held for less than three (3) years, the average shall be determined over the period during which the assets have been held; and be it further
 
RESOLVED, That the Board of Trustees hereby determines that the Board’s decision to treat 2.25% of the value of the endowment fund assets held by the University as income is consistent with the long-term preservation of the real value of such assets; and further
 
RESOLVED, That this Resolution shall be maintained as part of the permanent records of the University.
 
3-YEAR AVEAGE
ENDOWMENT FUND
FAIR MARKET VALUE
12/31/10-12/31/12
($000’s)
 

Endowment Funds

PE 12/31/10

PE 12/31/11

PE 12/31/12

3 Year Average

Equity Fund

16,394

15,153

17,449

16,332

Bond Fund

7,549

7,836

8,175

7,853

Short Term Investments

578

1,209

1,482

1,090

 

24,521

24,198

27,106

25,275

 

Prior Authorization %

Allocation %

Amount

FY04

4.50

977

FY05

4.00

868

FY06

3.50

760

FY07

3.00

651

FY08

2.50

543

FY09

2.50

543

FY10

2.50

543

FY11

2.00

434

FY12

2.25

534

FY13

2.25

568*

 

*Recommended
 
Note: Average Endowment Fund Spending for Non-Profit institutions is 5% per Commonfund study.
 
  • RECOMMENDED
 
NOTE: AVERAGE ENDOWMENT FUND SPENDING FOR NON-PROFIT INSTITUTIONS IS 5% PER COMMONFUND STUDY
 
The motion was properly moved and seconded.
 
Motion carried unanimously.
 







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