The Catholic Foundation of West Michigan
Distribution Policy

The Foundation distributes 4% of the account’s/fund’s investment market value semi-annually. Determining the investment market value of each account/fund is accomplished in two different ways depending upon its age. Member funds may choose to reinvest the distribution amount or receive the amount to be used in accordance with the established purpose of the fund.
 
The maximum annual distribution for a fiscal year (July 1-June 30) shall be calculated as follows:
 
For accounts/funds established three (3) years or longer

Distribution equals the average ending investment market value for the previous six (6) semi-annual periods, multiplied by 4%.
 
For accounts/funds established less than three (3) years

Distribution equals the average ending investment market value for the number of semi-annual periods since account inception, multiplied by 4%.
 
Calculation example for fiscal year July 1, 2012 – June 30, 2013

Semi-annual investment market values:
12-31-09            $  500,000
06-30-10                510,000
12-31-10                525,000
06-30-11                550,000
12-31-11                490,000
06-30-12                530,000
 
Total                 $3,105,000
 
Average            $   517,500
Multiplied by              x 4%
Maximum
distribution       $    20,700