An endowed gift is a gift that lasts forever. It has a long-term impact because the principal remains intact to earn investment income in perpetuity. UofL spends 5.5 percent of an endowed fund's market value annually, reinvesting the remainder of its capital growth income and thus increasing the value of the fund. As the endowed account grows, more funds are made available to support scholarship, professorships, building funds or other areas specified by the donor.

Endowed gifts typically start at $10,000-$25,000 for endowed scholarships or $1 million for endowed chairs.

How are endowment gifts invested?

Endowed gifts are invested in the University of Louisville Foundation’s pooled endowment portfolio, consisting of more than 1,100  individual endowment accounts. The endowment portfolio was valued at $746.9 million as of June 30, 2008.

Endowment contributions are tax deductible and are allocated according to redistributions established by donors. Although closely associated with the university, the UofL Foundation is a separate and distinct charitable corporation, and its affairs are directed and supervised by a board of directors.

How are endowments managed?

Contributions to endowment funds are professionally invested by the University of Louisville Foundation, with assistance from one of the nation’s best financial consulting firms. Our spending policy provides for an annual distribution of 5.5 percent of each endowment’s three-year average market value as calculated on Dec. 31. Distributions are made at the beginning of each fiscal year. All endowed funds are pooled and allocated to fund managers who have strong experience in institutional investing. Through prudent investing, they seek to secure the highest possible returns while minimizing risk.

How did UofL's investments do in fiscal year 2008?

Stock markets plummeted during fiscal year 2008 (July 1, 2007–June 30, 2008). The S&P 500 and Dow  Jones Industrial Average experienced losses of 13.1 percent and 13.3 percent, respectively. During this time, the university’s well diversified endowment portfolio experienced an overall net loss of just 1.4 percent—much better than stock indices.

Learn more

To learn more about endowments and how you can create a lasting gift, contact a member of our staff or call 502-852-6588.

For a complete list of university endowments, visit the Controller's Office web site.