Volume 24 · Number 4 · Summer 2007
Connections
What is an endowed fund and how is it used?
An endowed fund is established when a donor gives a gift to UC Davis in order to provide permanent funding for the university overall, or for a specific college, school or program of interest to the donor. Endowments may be named for the donor or in honor of loved ones, respected UC Davis faculty or other significant individuals.
The donor’s gift is held intact and permanently invested as a part of the UC Davis endowment. Each year a designated portion of the income earned is used to support the purposes specified by the donor, such as endowed chairs, student scholarships and fellowships or research in a particular field. The remainder of the earnings is reinvested in the endowment principal to promote growth and protect against inflation.
In the case of endowed chairs and professorships, the earnings available for the endowed chair holder are used to support his or her teaching, research and public service activities.
How is an endowed gift different from a “current-use” gift?
Endowed gifts provide a critical part of the university’s financial foundation, providing a permanent source of funds to support specific programs or projects. Current-use gifts are critical to the university’s current programs because they meet present needs, but their full amount is expended over a short period of time. At the end of the 2006 fiscal year, the total endowment supporting UC Davis was
$552 million.
How much does it cost to start an endowed fund?
The amount necessary to start an endowed fund varies widely, depending on the outcome the donor hopes to achieve and the area being supported. For example, the current recommended minimum to establish a named endowed undergraduate scholarship at UC Davis
is $25,000.
All endowed gifts help the university maintain its margin of excellence, and attract the best faculty and students.
For more information on establishing an endowment or contributing to an existing fund, please contact:
Development Office
(530) 757-3210
development@ucdavis.edu