Honor a loved one or mentor with an endowed fund that will live on in perpetuity.
Endowed funds are financial resources that have been donated to the university for a specific purpose. Endowments can include named scholarships, distinguished faculty chairs, endowed full professorships, among other areas of support.
Endowment dollars are invested and a percentage of its value is paid out each year. The original gift and any investment returns above the payout amount each year help the endowment to grow over time ensuring that sufficient financial resources to support the original purpose of the fund in perpetuity.
Endowments are an excellent way to permanently honor a loved one or mentor.
We have prepared the following information to provide you with an overview of endowment giving as you consider establishing an endowed fund or scholarship
Named funds for general student scholarships may be established at Lenoir-Rhyne University with a minimum gift of $25,000. Pledges may be fulfilled at the donor’s convenience anytime over a three-year period. An endowment agreement is signed by the donor and the president of the university.
The amount of revenue earned by a named fund is determined by the overall earnings of the university’s pooled funds.
Normally, earnings are awarded annually as they accrue in accordance with the endowment agreement once the fund reaches the minimum level.
Additional gifts may be added to the fund at any time through current or deferred gifts such as will provisions, by the donor or by other friends and family.
Recipients for scholarship funds are selected by the Office of Financial Aid using the government-approved financial aid information. Academic departments and other resources may be used as appropriate in the selection process.
The named fund will be listed in a university publication, which provides descriptions and awarding guidelines of all university endowed funds.
The recommended time frame for the completion of funding the $25,000 minimum is three years. Funds that are not raised to the $25,000 level within the agreed-upon time frame become part of the university’s general endowment.
The university provides annual reports to donors of fund performance and/or current status.
The university uses an endowment spending rate formula referred to as the “three-year average of market.” This formula is used to calculate the funds released on an annual basis by taking average market value of the endowed fund on May 31 of the previous three years and multiplying it by the university’s spending rate. The spending rate for the university is set by the Finance and Investment Committee of the Board of Trustees on an annual basis (Yr + Yr+Yr)/3=$. This average multiplied by our spending rate will enable the university to release funds for use by the recipient of this scholarship.