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Porter County Foundation approves roughly $8.9 million distribution, moves earnings into 2025 budget
Summary
The Porter County Foundation voted to transfer foundation earnings into its 2025 budget after approving a one-year 5% distribution based on a five‑year rolling average, a move that yields about $8.9 million and follows a temporary change from the prior 3.25% policy.
The Porter County Government Charitable Non For Profit Foundation, Inc., voted to transfer foundation earnings into its 2025 budget and to apply a one‑year 5 percent distribution, producing roughly $8.9 million available for the 2025 budget year.
Councilman Stone introduced the foundation's distribution analysis, saying the foundation had previously followed strict statutory rules that allowed up to a 5 percent payout based on a single year-end market value. Stone said legislation in June 2021 allowed the foundation to adopt a best-practices approach and the board adopted a 3.25 percent distribution on a moving five‑year average. At the September meeting the board approved a temporary change to 5 percent for one year, which produced the larger payout now being transferred to the budget fund.
Amanda Black, chief investment officer at Capital Cities, described how the distribution number was calculated: the foundation's 20-quarter rolling average market value was about $178 million, and a 5 percent payout on that rolling average yields roughly $8.9 million. Black reminded the board that even after a negative Q4 quarter, the rolling average increased over the calendar year.
Board members asked about the effect of the larger one‑year payout on future smoothing. Stone and Black said the larger distribution will reduce the market value used in future rolling averages and that staff will present a formal analysis next quarter showing expected returns and the policy's long‑term impact. Stone said the next quarterly meeting will include an analysis to help determine whether a 3.25 percent ongoing target is appropriate.
The board approved the motions by roll call (motion carried), and staff moved the approved amount from the foundation's holdings account into the foundation budget fund so the distribution can be spent in 2025.
The discussion included the legal and procedural background for the spending policy: Stone noted the statutory framework that governed the original single‑year, market‑value based distribution and the later legislation that allowed smoothing via a moving average.
Ending: The board directed staff and the foundation's investment advisor to return next quarter with an asset allocation study and a formal analysis of expected returns and inflation assumptions to support a longer term spending policy decision.
