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What is an endowment? An endowment is a gift that is held in perpetuity and invested in a manner that protects the principal from inflation . The investment income provides a stable funding source for such purposes as scholarships, professorships, lecture series and research centers. Purdue has received and managed hundreds of endowment gifts since its founding. Collectively, these gifts make up the Purdue University Endowment. For investment purposes, the individual endowment gifts are pooled into a single fund. Pooling endowment gifts allows Purdue to achieve greater diversity in its investments, lower its investment costs, and attain the maximum return on donors’ gifts. The University’s policy establishes endowment distribution that is significant yet stable. Current income and a portion of capital appreciation are distributed semi-annually based on effective market values as of June 30 and December 31. The distributions have varied from four to five percent of the rolling average market value of the total endowment over the last 12 quarters. Using a 12-quarter average protects the amount that is distributed to individual accounts from short-term fluctuations in the market. Please note, however, the following caveat that applies especially to endowments established during a market downturn: If a funds market value drops below its book value (total gifts to the endowment), so that there is no capital appreciation, state law limits the distribution to dividends and interest income- usually between 1.5 and 2 percent of the 12-quarter average market value. How is an endowment established? A minimum of $20,000 will establish an endowment at Purdue to support the Department of Agronomy through any outright giving method using cash, securities or personal and real property. A minimum of $50,000 is required to establish a charitable trust. Endowment agreements, signed by the donor and Purdue delegate to the University the responsibility to administer the funds according to the donor’s wishes in perpetuity. With respect to the donor’s wishes, Purdue University subscribes to the “Donor Bill of Rights” which can be found at www.purdue.edu/udo For more information on establishing an endowment please call 800-718- 0094. The following is a list of the endowments that have been graciously established to support the department of Agronomy. We are grateful to all of those that have helped to secure the financial future of this department by contributing to our endowments.
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