Posted by allisonm on March 25, 2001, at 7:31:39
In reply to Re: foundation grants » allisonm, posted by ShelliR on March 24, 2001, at 23:33:08
Hi Shelli,
There are no dumb questions. The $66,000 would be the base that Bob would use. Call it a nest egg instead of an endowment. The nest egg is put into an account and Bob uses PART of the interest from that account to pay for his hosting costs. At the university where I work, they don't usually spend more than 6% of the interest that comes off an endowment. The rest of the interest is folded back into the endowment so that it grows. Hence, the interest grows, so even if you keep taking 6%, say, the 6% over time becomes a larger sum too. Does that make sense?Allison
poster:allisonm
thread:619
URL: http://www.dr-bob.org/babble/admin/20010315/msgs/899.html