Notices

• "Notice Regarding Revised Policy for Expenditure of Endowments Established by the Hearst Foundations"

  The Hearst Foundations have approved, effective immediately, a revised policy permitting the prudent expenditure of existing endowment funds that have been established by grants from the Foundations. Under the revised policy, an organization which has received a grant from the Hearst Foundations to establish an endowment fund will be permitted to spend so much of the endowment fund as is prudent for the uses, benefits, purposes and duration for which the fund has been established. In determining the annual spending from the endowment fund, the organization may apply its spending rate, provided that the spending rate does not exceed 6.5% of the fair market value of the endowment fund at the end of the most recently completed quarter.

  The Board, officers and staff of the Hearst Foundations understand that charitable and educational organizations across the country have prudently invested their endowments and yet still have suffered deep market losses which may have reduced-at this time of increasing need-the organizations' ability to spend from their endowment funds. The Hearst Foundations believe that this revised expenditure policy for existing endowment funds established by the Foundations will be constructive, flexible and prudent.