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Endowment FAQ’SWhat is an endowment?An endowment is a permanent gift that is invested for the long term to provide sustainable financial support for the university. The gifted fund provides an annual spendable amount that is available for the designated purpose of the donor’s intent.Why does a public university need an endowment?An endowment is essential to the financial stability of any university, public or private, large or small. Funding from the state can be counted on for base budget allocations, but it doesn’t allow for programs that go beyond the basic, propelling a university from good to great by supporting programs worthy of national and international attention.Who decides how my endowment gift is used?You. As an endowment donor, you can designate a NAU school college, scholarship or program to benefits from your generosity. That benefit will spend the annual payout in a manner consistent with you intent when you establish your gift.How do I create an endowment and is there a minimum gift required?The fastest way to create an endowment is by contacting the NAU Foundation where our expert staff will guide you through the formal gift agreement process. Endowments can be established with an outright gift, a pledge or an advised bequest. Currently, a general endowment can be established with a minimum gift of $25,000 with fellowships, faculty professorships and chairs having a higher minimum requirement.What documents are required to create and endowmentAn endowment is establish through a formal gift agreement executed between the donor and the NAU Foundation, This agreement documents the donor’s spirit and intent in establishing the fund, the purpose of the endowment, administrative instruction, and specific criteria or other instructions to the NAU beneficiary.Can anyone make a contribution to my endowment?Yes. Contributions can be made by anyone interested in contributing to your fund or any established fund. Gifts can be made direct, online, through wire/stock transfer, pledges and gift planning.How long does it take for my newly established endowed scholarship fund to provide a scholarship for a student?When the fund reaches the gift required threshold at June 30, the payout is calculated as of December 31 and the spendable amount is made available the following fiscal year.Why does the value of my endowment fluctuate?Gifts to your fund can increase the marked value. Endowment distribution can decrease the market value. Investment earnings can increase or decrease the value, depending on market returns.How has the endowment performed?Endowment returns for fiscal year 2018 were 9.39%. It’s important to remember however, that an endowment’s growth is a long-term investment, and to consider extended performance as well. This valuation is at a point in time and as we all know stock market performance changes on a daily basis. Over 5 years the endowment yielded 9.66%. The following chart compares NAUF investment performance for FY18 to our peer group based on endowment size as reported in the 2018 NACUBO – Commonfund Study of Endowments. Does the NAU Foundation charge any fees on gifts?The Foundation does not charge a contribution fee on gifts to the endowment, however, a small percentage of the fund will be directed to partially cover the Foundation’s expenses related to developing, establishing and maintaining the fund on behalf of NAU. This fee is set, from time-to-time, by the Foundation’s Board of Directors.Do I have any rights and privacy as a donor?Yes. The NAU Foundation adheres to the Donor Bill of Rights – indicating you as a donor have the right to be informed, ask questions, and be assured that your information is handled with respect and confidentiality.For more information on the NAU Foundation Endowment, please contact:Cheryl HeitzChief Financial Officer928-523-3711 cheryl.heitz@nau.edu ................
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