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A fund established through a gift with a signed endowment which state that the principal may be spent on or after a predetermined date or period of time, or occurrence of a specified event.
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A fund established through a gift with a signed endowment that directs the spending of principal. Only investment income generated from the principal may be used.
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A fund established by the institution that is treated as an endowment but not subject to any legal prohibitions against spending. Gifts and other funds that are not restricted from being endowed may be used.
Key Endowment Terms
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A term used to describe an endowment whose current market value is more than its corpus.
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The original cost basis of an endowment, plus adjustments for gains or losses, additional gifts, external management fees and any other transfers to or from the fund.
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The aggregate amount of all contributions by a donor or donors to an endowment. This is not the same as book value.
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The portion of income available for expenditure according to the purpose of the endowment. Policy for determining the amount of distributable income is set by the Board. Currently, the policy is to distribute 4% of the rolling 12 quarter average unit market value.
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The written document or records, including an institutional solicitation, under which property (cash, real estate, etc.) is donated or granted to the institution and held as an endowment.
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The term given to an endowment whose historic dollar value equals or exceeds the amount pledged by the donor as stipulated in the endowment agreement.
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Interest, dividend income, realized gains and royalties received from the principal of the endowment.
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The minimum corpus level required per the gift agreement
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The difference (gain or loss) between the value at the time of purchase or other acquisition of an asset, and the market value of that asset at a point in time when the asset is sold.
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Endowment income whose use is restricted by donor instructions.
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The process of returning all or a portion of the quarterly distributed income to the endowment principal according to the endowment agreement or until the required funding level is achieved.
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A term used to describe an endowment whose current market value is less than its corpus.
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Assigned to an endowment and used to represent a proportional share of the total pool’s assets. Value of each unit is determined by the market value of the entire pool.
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Value of each purchased unit at specified date or time. Determined by taking total market value at the end of quarter divided by total units owned by the pool to determine value of an individual unit.
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Endowment income whose use is not restricted by donor instructions, but may be designated for a specific use by an internal component university decision.
Endowment Funding Levels
Minimum Funding Levels
Depending on the purpose of the endowment, the university has established minimum gift amounts that will provide an appropriate level of annual support. A general support or scholarship endowment can be established with a minimum gift of $25,000. Fellowships, professorships, chairs and other program-specific endowments have higher minimum gift requirements. Contact the Development Office for additional information about minimum gift thresholds.
Endowment Payout Timeline
Endowmnet Fund is Created
Once setup, the funds will be invested in the University Investment Pool and start generating income. The funds are invested at the start of each new quarter.
Once funds have been invested, income distributions will be available for funds who have meet minimum investing thresholds.