Endowment Management

Many donors to the College of Arts and Sciences have chosen to support the University by making endowed gifts that can transform the faculty and student experience and expand our impact year after year, generation after generation. Through permanent, endowed gifts, these donors ensure that we can continue to recruit and retain extraordinary faculty, launch innovative programs and projects, and that bright, engaged students have access to our world-class College of Arts and Sciences education.

An endowment is a permanent fund established for a specific purpose chosen by the donor(s). The principal of an endowed fund is invested with the intent of benefitting current and future generations. A portion of the earnings (currently 4% based on a five-year rolling average) are distributed quarterly to benefitting departments, with the goal of maintaining (and growing) the initial funds used to establish the endowment. This means that the principal gift continues to grow over time and generates a steady, reliable source of income in perpetuity.

Endowment distributions must be spent in support of the purpose defined by the donor(s) in the endowment agreement.

An endowment:

• Ensures regular funding levels for UW departments, programs and operations
• Helps stem rises in tuition by providing much-needed financial aid
• Gives UW the flexibility and freedom to embark on new disciplines while offering prestige and recognition to benefactors and beneficiaries

Provides donors an opportunity to create a lasting legacy and support the University in perpetuity

Once a new endowment fund has a signed agreement and the minimum amount of funding required to invest has been received from the donor(s), the endowment is eligible for investment through the university’s Consolidated Endowment Fund. When a new endowment that benefits your department is invested, the Advancement Services team will let your department know.

New endowments are invested on a quarterly schedule:

• January 1
• April 1
• July 1
• October 1

When the endowment has been invested, the distributions for the first two quarters help to cover the cost of administrating the funds. At the end of the third quarter, the endowment distributions begin to distribute to the benefitting department. For example, if an endowed fund which benefits your department invests on January 1, then the fund would begin distributing, and therefore have funds available for your department to use, on September 30.

The Advancement Services team will reach out again at that time with more details about newly distributing endowments.

The Advancement Services team coordinates a quarterly announcement process for newly distributing endowments in order to ensure that your departments, programs, and centers are notified when new funds become available. The notifications include the endowment name, budget codes, current market value of the fund, estimated annual distribution, and the fund’s purpose according to the endowment agreement.

Quarterly distribution dates:

• December 31
• March 31
• June 30
• September 30

Stewardship tip: notification that a newly created endowment is distributing is a great time to reach out to that fund’s donor(s) to thank them for their gift and let them know the impact the endowment will have on your program or project. When appropriate, the Advancement Services team may prompt you to do this by sending you notecards and sample language to use.

While this is an important time to learn about funds that can be used to support your departments, programs, and centers, it is not always easy to know how to use—and more specifically, to spend—these funds. The Advancement Services team is happy to clarify any questions or concerns you may have regarding endowment funds to which your department is a beneficiary. Questions can be directed to Theresa Mejia, Manager of Endowment & Gift Documentation, at tmejia@uw.edu.

Please contact the Advancement Services team anytime at CASadser@uw.edu with questions or for more information about how we can help your department steward your donors. Additionally, you are welcome to reach out to one of our team members directly:

Theresa Mejia, Manager, Endowment & Gift Documentation

tmejia@uw.edu | 206.616.5373

For questions about endowments—investment, distribution, and how to use funds.

Lindsay Bailey, Associate Director of Advancement Services

ljbailey@uw.edu | 206.685.7160
For general questions about donor relations and stewardship activities/resources.