The goal of the is to provide enough payout each year to meet the needs of current programs, while also allowing the value of the endowment principal to grow to keep pace with inflation and provide more income to sustain programs in future years.
A) capital budget
B) cash budget
C) spending limit
D) operating budget

Question

Quizplus · Accepted Answer

The description of the goal suggests a spending limit approach, which involves setting a sustainable and flexible limit to annual payouts from the endowment, based on a combination of factors such as the size of the endowment, the expected return on investments, and the cost of maintaining programs over time. A capital budget involves allocating funds for long-term investments in assets or infrastructure, while a cash budget focuses on managing short-term liquidity needs. An operating budget covers the daily expenses of running an organization.

The Goal of the Is to Provide Enough Payout Each