b'Frinieanndcsia, lH Pornoofirlse & TransitionsFCarnegies investment goals are to provide high levels of current support to the institution 64 and to maintain the long-term spending power of its endowment. The success of Carnegies investment strategy is illustrated in the first figure (right) that compares, for a hypothetical investment of $100 million, Carnegies investment returns with the average returns for all educational institutions for the last fifteen years. Carnegie has pursued a long-term policy of controlling its spending rate, bringing the budgeted rate down in a gradual fashion from 6+ % in 1992 to 5% today. Carnegie employs what is known as a 70/30 hybrid spending rule. That is, the amount available from the endowment in any year is made up of 70% of the previous years budget, adjusted for inflation, and 30% of the most recently completed year-end endowment value, multiplied by the spending rate of 5% and adjusted for inflation and debt. This method reduces volatility from year-to-year. The second figure (right) depicts actual spending as a percentage of ending market value for the last 20 years.In fiscal year 2018, Carnegie benefitted from continuing federal support. Carnegie received $17.9 million in new/additional federal grants in 2018. This is a testament to the high quality of Carnegie scientists and their ability to compete successfully for federal funds in this period of fiscal restraint.Carnegie also benefits from generous support from foundations and individuals. Funding from foundations has grown from an average of about $3 million/year in the period from 2000 to 2004 to $8.9 million in 2016. While there was a slight decline in 2017 and 2018, our private grant fundraising continues to be strong. Within Carnegies endowment, there are several funds that provide support either in a general way or targeted to a specific purpose. The largest of these is the Andrew Carnegie Fund, begun with the original gift of $10 million. Mr. Carnegie later made additional gifts totaling another $12 million during his lifetime. This tradition of generous support for Carnegies scientific mission has continued throughout our history and a list of donors in fiscal year 2018 appears in an earlier section of this year book. In addition, Carnegie receives important private grants for specific research purposes.'