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 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 the earned interest can be expended for the purpose for which the gift 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 and common/fund. The finance committee of the Foundation's board of directors sets investment policy and monitors the fund manager's performance continuously.
Currently, interest for spending is paid at the rate of
four percent (4%)
annually. At the 4% interest rate, a $25,000 endowed gift generates
sufficient resources to provide $1,000 annually in support of
scholarships, loans, lectures, programming in the fine and
performing arts or enrichment of the academic areas. Prior to
2003 the spending rate was paid at 5% annually.
The Foundation utilizes 1% annually to cover operating expenses
related to managing the fund. Earnings in excess of the established spending rate plus the one percent (1%) 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.
Example of initial gift of
$25,000 from 1995 to 2007 (endowment returns)
At the present time, endowment funds total over $17 million and comprise approximately
31% of the Foundation's assets. Interest generated by the total endowment for the coming year will provide over
$680,000 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
giving@clarion.edu.
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