Endowment Funds are those funds which ensure the future of the Foundation's programs in support of Clarion University. Endowment funds are created through provisions by the donor that the assets are to be invested. Only a small portion of each fund can be expended annually for the purpose for which the endowment was established. In addition to providing beneficial program support to the University, endowments offer the the opportunity for a donor to provide recognition or memorialize an individual or family.
The Foundation is charged with certain responsibilities for the management and investment of endowment funds. The endowment funds are managed professionally by PNC Advisors, common/fund and Janney, Montgomery, Scott, LLC. The finance committee of the Foundation's board of directors sets investment policy and monitors the fund manager's performance continuously.
As of May 7, 2009, board policy affirmed that spending be authorized at the rate of 3.5% on a three-year-rolling-average of the endowment balance each June 30. Endowment balances at June 30 would include annual earnings as well as any annual capital gains or losses. At 3.5% a three-year-average of $25,000 would generate sufficient resources to provide $875 in support of scholarships, loans, lectures, programming in the fine and performing arts or enrichment of the academic areas.
6/30/2007 Endowment Balance $25,000
6/30/2008 Endowment Balance $20,000
6/30/2009 Endowment Balance $30,000
Three-Year Average $25,000
3.5% of the three-year-average or $875 is available
in 2009/2010 to offer for scholarships, awards, etc.
to be paid in 2010/2011.
Also affirmed in the May 2009 policy is that 1% of the three-year-rolling-average endowment balance will be utilized to cover operating expenses related to managing the fund.
When available, growth and earnings in excess of the established spending rate and management fee shall be reinvested proportionally to the principal of each fund. This provision for growth of the endowment principal assures a future benefit to the university community that is intended through the establishment of endowment funds.
At the present time, endowment funds total over $18 million and comprise approximately 22% of the Foundation's assets. Interest generated by the total endowment for the coming year will provide over $720,000 in support of University programs.
While the Foundation accepts gifts of any size to an already established endowment, there is policy concerning the establishment of a new restricted or named endowment. A named endowment can be created with a gift of $25,000. Gifts may be made in cash or through other vehicles, such as securities, in-kind property, or planned gifts including bequests, trusts, annuities and insurance policies.
For additional information on how to establish a permanent endowment fund, please call us at 814-393-2572 or e-mail the Clarion University Foundation, Inc. at firstname.lastname@example.org.