Thedistributionpolicy Ofthecardinal Foundationcontinuesto Combine a Minimumpayoutstandard

DistributionPolicy

Thedistributionpolicy oftheCardinal Foundationcontinuesto combine a minimumpayoutstandard withanaveragefairmarketvalue toarriveatthe annualdistributioncalculation.However,duetothesignificantmarketdevaluationof 2008andthe enactmentof theUniform PrudentManagementofInstitutionalFundsAct (UPMIFA)inJanuary2009,eachendowedfundoftheFoundationisreviewed andcarefully classifiedintodistributionschedulesbasedonthefundagreementandthe understood charitable objectiveof thedonor(s).

The annualdistributionofendowedassetsshallbe basedonthe totalweightedreturn calculated onthe rollingaverage of thefund’smarketvalueinthe previoustwelve (12) quarters.The objective istopreservecapitalandprotectsthe assets frominflationary pressures.

Ideally, theamountofincome tobe distributed frompermanentlyrestrictedand temporarily restrictedendowedfundsshallhaveafloorofthreepercent(3%)andshall have a capofnomore thansixandone-halfpercent(6.5%)ofthetotalfairmarketvalue based on the aboveweighted calculation.

Permanently Restricted Endowments: In the event theprincipal of a permanently restrictedendowedfundisbelowtheoriginalgiftvalue, includingadjustmentsfor inflationandanyprovisionstopreserveadditionalprincipalcontributions,theunderstood charitable intent of thefundshallgovern thedecisionof theBoard ofDirectorstoalter the abovedistributionguidelines.Therefore,theBoardmay prudently determinethata specific:

permanentlyrestrictedendowedfundmaymakedistributionsfromprincipalin anamountandfor a periodof time infurtherance of the charitable intentof the fund, or

permanentlyrestrictedendowedfundshallceasecharitabledistributionsfrom principal until the fundaccumulates assets to meet the requirements of this Policy.

TemporarilyRestricted Endowments:Intheeventtheprincipalofatemporarilyrestricted endowedfundisbelow theoriginalgift value,includingadjustmentsforinflation andany provisionstopreserveadditionalprincipalcontributions,the understoodcharitable intent ofthefundbasedonthedefinedtemporaryrestrictionshallgovernthedecisionofthe BoardofDirectorstoaltertheabovedistribution guidelines.Therefore,theBoardmay prudentlydeterminethataspecific:

temporarilyrestrictedendowedfundmaymakedistributionsfromprincipalinan amountand foraperiodof timein furtheranceofthe charitableintent of thefund, or

temporarilyrestricted endowed fundshall ceasecharitabledistributions from principaluntilthe fund accumulatesassetstomeetthe requirementsof the restriction.

UnrestrictedEndowedFunds:Distributionsfromunrestrictedendowedfundsmay be permanently endowed.Intheeventtheprincipalofapermanentlyendowedunrestricted fundisbelowtheoriginalgiftvalue,including adjustmentsforinflationandany provisionstopreserveadditionalprincipalcontributions,the understoodcharitable intent of thefund shallgovernthe decisionof theBoardofDirectorto alter theabove distribution guidelines. Therefore, theBoard mayprudentlydeterminethataspecific:

permanentlyendowedrestrictedfundmaymakedistributionsfromprincipalin anamountandfor a periodof time infurtherance of the charitable intentof the fund,or

permanentlyendowedrestrictedfundshallceasecharitabledistributionsfrom principal until the fundaccumulates assets to meet the requirements of this Policy.

Non-EndowedFunds:Distributionsfromnon-endowedfundsshallbegovernedbythe recommendations of thedonoror thefund agreement and arenot subject tothis Policy.

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Approved by Board of Directors quorum vote on 8/21/2013