Option 4 — Financial Governance

Endowment Stewardship

Institutional-grade governance, transparent reporting, and disciplined investment management — your gift is professionally managed.

4.5%
Distribution Rate
7.2%
10-Yr Avg Return
75%
Donor-Restricted
Annual
Audited Reports

How the Endowment Is Managed

The CKA Endowment operates under a formal governance framework designed to protect donor intent, ensure prudent stewardship, and maximize long-term returns. The Endowment Committee is guided by three foundational documents:

Organizational Bylaws

Define the committee structure, roles, responsibilities, voting procedures, and succession protocols that govern the endowment.

Investment Policy Statement

Establishes asset allocation targets, risk tolerance parameters, rebalancing rules, and performance benchmarks for the portfolio.

Spending Policy

A rules-based distribution formula (currently 4.5% of trailing 12-quarter average) ensures sustainable payouts without eroding principal.

Compliance Framework

Annual independent audits, quarterly committee reviews, and adherence to UPMIFA guidelines ensure full legal and fiduciary compliance.


Portfolio Allocation

The endowment portfolio is constructed for long-term growth with institutional diversification. Allocations are reviewed quarterly and rebalanced to target weights.

Asset ClassTargetAllocation
U.S. Equities40%
International Equities20%
Fixed Income25%
Alternatives & Real Assets10%
Cash & Equivalents5%
Total100%

Investment Principles

1

Preserve Purchasing Power

The portfolio targets returns that exceed inflation plus the distribution rate, ensuring the endowment grows in real terms over time.

2

Diversify Broadly

No single asset class, sector, or security dominates the portfolio. Diversification is the primary risk management tool.

3

Minimize Costs

The committee prioritizes low-cost index funds and institutional share classes to maximize net returns to the endowment.

4

Honor Donor Intent

Restricted gifts are tracked separately and spent only in accordance with the donor's stated purpose. Nearly 75% of endowed funds carry donor restrictions.

5

Report Transparently

Annual audited financial statements, quarterly performance reports, and an endowment annual report are available to all donors and stakeholders.

Annual Reporting Cycle

Quarterly Reviews (Mar, Jun, Sep, Dec)

Committee meets to review portfolio performance, rebalance if needed, and approve distributions for the upcoming quarter.

Annual Audit (January)

Independent audit of endowment financials, internal controls, and compliance with IPS and spending policy.

Annual Report (February)

Published report to donors and community summarizing performance, distributions, impact, and committee activities.

IPS Review (March)

Annual review and update of the Investment Policy Statement to reflect any changes in objectives, risk tolerance, or market conditions.

Request the Latest Annual Report

Our most recent audited financial statements and endowment performance report are available upon request.

Request Report

Your gift is managed with the same rigor and discipline as an institutional endowment.

For questions about governance, investment management, or reporting, contact the Endowment Committee.