Virginia Tech Foundation

The annual payout distribution for an endowment is determined by adjusting the prior year´s endowment payout per unit by the annual change in the Consumer Price Index (CPI). However, the total spending rate for the endowment must remain between 5.25% and 6.75% of the three-year moving average market value of the endowment fund. In short, the spending rate each year is the prior year´s rate plus inflation with a floor of 5.25% and a ceiling of 6.75% of the three-year moving average market value of the fund. Each fund receives distributions in quarterly increments as of September, December, March, and June of each year. The payout distribution is posted to the income/expense fund before the close of each quarter.