Frequently Asked Questions About
Establishing an Endowment at UNH
What is an endowment? | Why establish an endowment? | What is the minimum amount necessary to establish an endowment at UNH? | How is an endowed fund invested at UNH? | What is the current value of the University’s endowment? |
What is an endowment?
A permanent source of income for University programs and/or departments. Gifts to an endowment are invested, with a percentage (currently 3.8%) of the income growth supporting a specific University purpose as directed by the donor(s). The remaining income (minus an administrative fee) is reinvested into the endowment, ensuring that the value of the investment grows forever.
Donors are encouraged to name the endowment in a way meaningful to them (i.e., Smith Family Fund, Joe Smith Fund for Excellence, etc.)
Why establish an endowment?
There is a growing need for universities to have long-term financial stability in order to deliver reliable service despite changes in the economy and government funding.
What is the minimum amount necessary to establish an endowment at UNH?
The minimum amount necessary to establish a new endowment at UNH is $25,000. This amount can be paid all at once or in payments (typically three to five years). Once the fund reaches the $25,000 amount, it will payout to purpose. Until $25,000 is reached, the interest gained is reinvested in the fund.
Many times, donors also choose to provide a “current-use” gift, while their endowment is building. For example, a donor paying a $25,000 pledge over five years ($5,000 per year), would also supply the $750 in current-use money to start making an annual award, therefore seeing the immediate impact of their gift.
How is an endowed fund invested at UNH?
The Foundation's investment policies are intended to preserve and increase the real principal value of its endowment while providing a dependable stream of income for the University. The Foundation does not engage in high-risk or speculative activities. Portfolio management always follows written guidelines agreed to by the managers and the Investment and Finance Committee. The Foundation's portfolio is diversified so as to keep volatility within acceptable limits for the portfolio as a whole.
The strategy of the Foundation Board's Investment and Finance Committee is a prudent one, designed to ensure that future generations derive as much benefit from the endowment as do current students.
What is the current value of the University’s endowment?
Currently, the University of New Hampshire Foundation manages more than $125,000,000 invested in its endowment.
