Budgeting and Spending Policy from Funds

The Fredericton Community Foundation has adopted a budget policy that takes into consideration the ever changing rate of return on its investments. At present, the Canadian Revenue Agency stipulates that a Community Foundation will disburse a minimum of 3.5% of its assets in any given year. Recognizing that the rate of return on investments can fluctuate from year to year, the spending policy of the Foundation is as follows:

In years where the return on investment is less than 4.5%, the budget in the following year be 3.5% of assets. (Administration Included). In years where the return is 4.5% or greater, the budget in the following year be 4.5%.(Excluding Administration)