Investments and Fees

TOLEDO COMMUNITY FOUNDATION, INC.
Spending Guidelines & Administrative Fees

Adopted by the Board of Trustees - Effective January 2006

Assumptions - Estimated Real Rate of Return ^[1]

Equities (80% of portfolio):	6.00%
Fixed Income (20% of portfolio):	2.50%
80% equities x 6.0% real rate of return =	4.80%
20% fixed-income x 2.5% real rate of return =	.50%
Less Average bank/recordkeeping/investment fees =	.40%
Estimated Real Rate of Return	4.90%

Administrative Fees and Spending Guidelines by Type of Fund
Administrative fees vary by the type of Fund, as outlined below. The minimum administrative fee for any fund is $100 annually. The spending guideline (the amount available annually for distribution from a fund) is calculated using the Estimated Real Rate of Return, less the Foundation's administrative fee percentage. The spending guideline is applied to the five-year average market value of a fund.

• Community Needs Funds (Unrestricted or Field of Interest), Scholarship, Donor Advised Endowed Funds and Supporting Organizations:

TCF Administrative Fee =	.95%
Spending Guideline =	3.95%

• Designated Funds :

TCF Administrative Fee =	.95%
Spending Guideline =	3.95%

• Organization Endowment Funds :

TCF Administrative Fee =	.40%
Spending Guideline =	4.50%

• Donor Directed Pooled Funds :

TCF Administrative Fee =	.95%
Spending Guideline =	IRS regulations mandate net income must be distributed

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The above fees are for funds with a five-year average market value of $2.5 million or less. Once a fund’s average five-year market value exceeds $2.5 million, a fee of .1% will be charged on the excess.

 

Example – An unrestricted fund with a five-year average market value of $3 million would be assessed fees as follows:

$2.5 million x .95% =	$23,750
$500,000 x .1% =	500
Total Fee	$24,250

¹ Estimated real rates of return for both equities and fixed-income are based on projected long-term average annual nominal rates of return less projected average annual inflation rate.

(Rev. 03-2006)