Spending out—making it happen

Published by Association of Charitable Foundations. October 2012, UK. 20 pages.

While it may be of interest to a wider audience, this companion guide is focused on the practicalities of spending out and targeted at those foundations that have decided this is the path for them. By sharing the practical experience of those who are well into the process or have already completed it, we hope to make it easier for others wishing to follow in their footsteps.

‘Spending out’ refers to the process of spending both endowment income and capital, with a view to using up all the assets of a trust over a defined period. There are variations in how this is done but we use spending out to refer to them all. In the US and elsewhere the process is often known as spending down. Spending out is technically possible for any trust with an expendable endowment. Only those foundations required to maintain their endowment in perpetuity are unable to consider this option