Endowment funds are permanent funds where the principle (or corpus) remains in perpetuity. The initial gift and any future gifts to the endowment fund grow through the sound investment policies of the CCFSC.
Annually, the Board distributes annual income from each endowment fund to its intended beneficiary for its intended purpose in accordance with the Distribution Policy of the CCFSC . Currently the Distribution Policy allows for a disbursement of 4% of the market value of the fund as of June 30th. Once the fund exists for 3 or more years, the distribution is 4% of the average market value as of June 30th for the last 3 years.
Restricted funds differ in that the principle may be used in its entirety and distributions may occur to the intended beneficiary for the established purpose on a quarterly basis, rather than only annually.
Restricted funds are a way to provide for a benefit for a shorter purpose or period of time, while endowment funds provide for long-term (forever) financial support.