The Scranton Area Foundation has adopted a total return policy in an effort to maintain or increase the true value of endowment and its distributions to the community now and in the future. By utilizing a total return policy more return will come from capital appreciation rather than only current income of permanent funds. Each year the Board of Governors and its Investment Committee establishes a spending percentage of its asset base. This amount may be more or less than actual income from dividends and interest. A total return policy means that interest, dividends and capital appreciation are considered as a single amount in the fund. The spending rate holds spending in check through lucrative years, and enables spending in less productive years. Thus, donors funds are being managed to provide a balance between current and future community needs and opportunities. Investment decisions can be based on flexible long-term strategies which are not subject to sudden changes in interest rates or market value. Grant recipients and the community will be able to count on funds from their community foundation which will be made available for distribution based not only on changes in current investment income.