Endowment

What's an endowed fund?

An endowed fund is a permanent, self-sustaining source of funding. When you establish an endowment fund, you create a permanent legacy of support for UWL. Three examples of how endowments can be used:

  • scholarships
  • professorships 
  • lecture series

You can name an endowment in:

  • your own name
  • your company's name
  • name of a loved one
  • name of an associate
  • name of a favorite faculty or staff member

Directing a fund

A named fund may be directed toward any number of particular concerns chosen to reflect your own interests, or those of the person, business or organization you honor.

A fund might lend support to a general area or discipline: the arts, science, education, allied health, recreation or business; or, perhaps, to a more specific purpose like one of these:

  • Scholarships - to fund awards for academic excellence, or for financial need
  • Visiting lecturers - to fund campus visits by noted scholars or public figures
  • Chairs or professorships - to recognize, nurture and enhance excellence in teaching
  • Library acquisitions - to purchase books, recordings, subscriptions or special collections
  • Faculty/staff development - to further intellectual growth and teaching and professional skills
  • Advancement funds - to meet the most current and pressing priorities of the University
  • International studies - to give students a global view and promote better understanding
  • Academic equipment - to assist departments in keeping up with technical needs
  • College/department needs - to aid a particular college or department within the University
  • Campus beautification - to maintain and improve the campus environment

Power of an endowment

An endowment fund is a perpetual and powerful gift. Please see the table below to view the impact of a one-time $50,000 contribution. 

 

 

Beginning Balance

Income at 8%

Balance with Earnings

Cumulative Payout Total

Year 1

$50,000

$3,000

$53,000

$2,120

Year 5

$53,614

$3,217

$56,831

10,980

Year 10

$58,501

$3,510

$62,011

$22,960

Year 20

$69,952

$4,179

$73,831

$50,297

Year 30

$82,929

$4,976

$87,905

$82,845

Year 40

$98,736

$5,924

$104,660

$121,596

Year 50

$117,557

$7,053

$124,610

$167,735

 

Notes: Projected income is based on a projected 8% return with a 2.25% annual fee. Cumulative payout total is based on the Foundation's current 4% spending policy. Beginning balances shown include the 2.25% annual management fee taken out. At the end of year 50, a total of $167,735 in payouts will have been distributed.

 

Memorandum of Understanding

Endowment Fund Agreement

The agreement between the donor and the UWL Foundation defines the purpose of the fund. We use standard language for endowment agreements to ensure consistency in management of the funds. As we work with you to establish the endowment, we will discuss your preferences and suggestions with you.

Endowments require a fund agreement and a minimum gift of $25,000. The $25,000 can be paid at the time the fund agreement is signed, or schedule a 3 to 5 year payment plan to fully endow the fund. During that 3 to 5 year period, many fund holders make an additional annual gift to fund a payout.

The goal of the Foundation's total return policy is to provide disbursements for scholarships and awards at a stable level established by the Board to be as large as possible (a minimum of 4% of the fund balance annually) while still honoring its responsibility to the future for continued growth and protection of the fund.

A .1875% monthly fee is currently charged against the investment return on the entire endowment pool and the net return allocated proportionately to each fund.

Reporting

The UWL Foundation will send an annual report on the value and use of your endowment fund. Fund holders are recognized for their support by inclusion in donor listings and invitations to special events.

Each year, scholarship fund holders are invited to the annual Scholarship & Awards Program to honor donors and celebrate student academic achievement.

Foundation fund management

The Foundation's Investment Portfolio is overseen by its Investment Committee which works with professional managers retained to handle day to day investment. Endowment assets are invested and are subject to market gains and losses. 

The Investment Committee meets regularly with the managers to review and evaluate their performance against the bench marks, policies and goals established by the Foundation.

The goal of the Foundation's total return policy is to provide disbursements for scholarships and awards at a stable level established by the Board to be as large as possible (a minimum of 4% of the fund balance annually) while still honoring its responsibility to the future for continued growth and protection of the purchasing power of the fund in the face of inflation and rising costs.