b'Frinieanndcsia, lH Pornoofirlse & TransitionsFCarnegies investment goals are to provide high levels of current support to the institution 68 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 15 years. Carnegie has pursued a long-term policy of controlling its spending rate by using a hybrid spending rate, which in the long term contributes 5% of the endowment for annual use. 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 $19.89 million in new/additional federal grants in 2019. 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. In 2019, Carnegie brought in $7.9 million in funding from foundations/non-federal entities, which was a $300,000 increase over 2018. 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 2019 appears in an earlier section of this Year Book. In addition, Carnegie receives important private grants for specific research purposes.'