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[[underlined]]Commitment of Unallocated Unrestricted Trust Funds to Important Programs[[/underlined]]

The Regents have established that a high priority commitment for unallocated unrestricted trust funds each year must be the continued development of the Institution's unrestricted purpose endowment funds.  These funds must serve to provide some protection against continued inflation and the effects of future uncertain economic conditions.  At the end of fiscal year 1977 the unrestricted endowment fund totaled about $12,600,000.  It is anticipated that a further $4,000,000 will be transferred to this endowment by the close of fiscal year 1978.  Additional transfers, if funds are available, will be budgeted in subsequent years for approval by the Regents.

In view of the substantial unmet needs of the Institution, the Regents believe it is important to recognize that we now have an opportunity to meet a number of those objectives that will benefit the public.  Such applications have not been possible in previous years in the absence of available funds.  The Financial Report presented at the September 27, 1977 Regents meeting suggested that an unallocated unrestricted amount be committed by the Board for such services.  This would encompass three principal areas of traditional Smithsonian activity: the development of the national collections, the increase and diffusion of knowledge by means of scholarly and educational programs in the following amounts:

Collection acquisitions - $1,000,000
Scholarly projects - 500,000
Educational programs - [[underlined]]500,000[[/underlined]]
[[total]]  $2,000,000