b'WHATS ANENDOWMENT ?Endowments provide the stability needed to weather the uncertainties of the future, recruit and retain exceptional students and faculty, and deliver critical funding to support academic, Judaic, arts, athletics, and extra-curricular programming and curriculum initiatives. Apercentageoftheendowmentcalledthespend rate, is distributed to Posnack School each year per the guidelines of each funds restrictions. The actual calculation of the overall distribution is based on the 12-quarter trailing average market value of each fund making up the endowment.The remaining earnings arereinvestedtoensurelong-termgrowthand sustainability,thusmaintainingthefundsspending power far into the future. In this way, an endowment is intended to be a perpetual gift. Endowed funds can be approached in two ways.Arestrictedfund isatypeHow an endowment fund worksofendowedfundthathas been designated for a specific purpose,suchasacademic scholarships or Jewish learning. An unrestricted fundis the most valuable type of endowed fundbecauseitprovides leadership flexibility in applying themoniestotheareasof highestneed,whichmaybeGIFTINVESTGRANTverydifferenttomorrowandGIFTINVESTGRANTalmost surely different 20 years from nowthan they are today.A gift is made The principalA portion ofand forms the is protected, the funds valueprincipal.invested, and is distributedgrows.annually forever.6'