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The board should agree with Suggestion 1 – $360,000 is needed to fund the current year’s expenses, representing 4.5% of the portfolio. The cash allocation should be higher to make sure the current year’s expenses can be paid. The board should also agree with Suggestion 2 – an endowment needs more growth to meet future needs as well as keep up with inflation. With a spending rate of 4.5% and an inflation rate of 3.0%, the endowment requires a return of at least 7.5%. The current allocation to bonds is too high. Given the growth needs of the endowment and the return projections of the asset classes, the allocation should be higher for U.S. equities and both emerging and developing market equities, therefore, the board should not agree with Suggestions 3 and 4.