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Under prior policy, only Direct Program Costs were supported by the distributions from endowed funds. As a result, non-endowment revenues were unreasonably encumbered with significant expense clearly associated with and essential for - but not actually charged to - endowed activities. After considering this outcome, the Trustees concluded that failure to apply endowment support to all costs of any particular program in effect resulted in a subsidization of that program's full costs from other resources needed for other purposes.
