Learn about Our Funds
Endowed Funds (Fund numbers beginning with a 1)
- Gifts cannot be spent and are held in perpetuity.
- Gifts are invested in the Pooled Investment
Portfolio to earn investment income.
- Annually, a spending budget is established, based on
the UT Endowment Spending Policy.
- The budget is taken from the accumulated investment income.
Example
| Donor Alumni Scholarship |
#1300999
|
| Permanently Endowed Gifts |
|
$ |
1,391,288.20 |
| Endowed Investment Earnings |
|
$ |
594,999.49 |
| Endowed Spending Budget |
|
$ |
54,300.00 |
| Pledges Outstanding |
|
$ |
100,000.00 |
| Total Fund Value |
|
$ |
2,140,587.69 |
Permanently Endowed Gifts:
- Donor gifts are recorded to the permanently endowed portion. If a donor contributes $100,000 to the above fund, the
Permanently Endowed Gifts
balance will increase to $1,491,288.20.
Endowed Investment Earnings:
- Investment earnings from the
Pooled Investment Portfolio are recorded to this portion of the fund.
- The earnings can be positive or negative, based on the
market returns of the portfolio.
- The Endowed Spending Budget is funded from this portion of the fund.
Endowed Spending Budget:
- An annual budget is determined and funded from the
Endowed Investment Earnings.
- UT Departments can request to have unspent budget carried forward to the next fiscal year.
Pledges Outstanding:
- These are donor financial commitments that have not been
received by the Foundation. When a donor makes a payment on a pledge, the
pledge's outstanding balance will decrease and the permanently endowed gifts
portion will increase.
Administrative Fee on Endowed Funds
Endowed funds are assessed an administrative fee of 1.40% annually. The rate is approved by the UT Foundation Board of Trustees.
The UT Foundation assesses the fee in July for the entire fiscal year.
Non-endowed Funds (Fund numbers beginning with a 2).
- Gifts can be spent at any time.
- Does not earn investment income
.
- Why? Because these funds are available to be spent right now, they should not be exposed to the risks of the market.
- No administrative fee.
- No budget is needed because all of the funds can be
spent at any time as long as there are no encumbrances.
Example
| Donor Alumni Scholarship |
#2400999
|
| Non-endowed Gifts |
|
$ |
1,391,288.20 |
| Pledges Outstanding |
|
$ |
100,000.00 |
| Total Fund Value |
|
$ |
1,491,288.20 |
Spendable Gifts:
- Non-endowed gifts are fully spendable.
Pledges Outstanding:
- These are donor financial commitments that have not
been received by the Foundation. When a donor makes a payment on a pledge, the
pledges outstanding balance will decrease and the non-endowed gifts portion will
increase.