The purpose of the Spending Policy is to allow endowment funds, managed by the American Brain Foundation (“ABF”), to be invested on a “total return” basis to maintain and, if possible, increase the real value (as adjusted for inflation) of the funds, while at the same time providing a relatively steady and predictable level of funding for grantees.
The ABF will spend a minimum of 5% of the average annual fair market value of each endowment fund, for the prior 12 quarters. Spending available for each fund will be used to cover grant distributions and ABF’s administrative fee of no more than 1% of the principal. The administrative fee reflects the reasonable and appropriate reimbursement for the direct and indirect costs associated with ABF’s administration of its managed funds.
The ABF’s Spending Policy is reassessed annually by the Board of Directors.
Approved February 9, 2007 by Board of Trustees, amended by the ABF Board of Directors on March 18, 2016.