Endowments

A financial endowment is a transfer of money donated to an institution, with the stipulation that it will be invested and the principal remain intact in perpetuity

Only the income/interest distributions can be expended

This allows for the donation to have a much greater impact over a long period of time than if it were spent all at once

Types of Endowments

1. Endowment
   • Eligible to be matched by state lottery funds
2. Quasi-Endowment
   • Not eligible to be matched by state lottery funds

• Endowments contain a Corpus which is the initial contribution/pledge amount made (does not include qtr. fees and earnings)
• Appreciated Interest is transferred to a spendable account on July 1st of each year
  • Endowment must be active for 1 entire fiscal year in order to spend interest earned
  • Appreciation = Market Value – Corpus
• Spending Allocations are affected by investment returns and spending rates
  • Spending allocations were calculated as 4.0% of the average market value of the endowment for the past three years at December 31st.
    • Market value – Endowed Balance (updated with qtr. earnings and fees)