The Power of Endowment
By Hilary Mayall Jetty Every gift to the UNM Foundation (UNMF) is a commitment of confidence in the University’s mission. When you establish or contribute to an endowed fund, the scope of your gift increases, becoming a foundation for lasting support beyond your lifetime. Each fund has a set of guidelines to ensure that assets are spent according to a determined purpose and intent. Through an endowment you may assist any school, college or program, provide for student scholarships, faculty development and research, or serve the general needs of the University. Individuals, families, friends, alumni, colleagues, organizations and corporations may establish endowments. Some are created to honor or memorialize a significant person or group. Endowed funds are gifts held in perpetuity. The principal is not spent down but rather is carefully invested as part of a larger Consolidated Investment Fund (CIF), also known as the UNM Endowment. The growth of the CIF (see page 4) enables an annual distribution of a percentage of average market value over a five-year period, typically 4-6 percent. Monies are then made available for recipients as specified in guidelines, and based on the value of each endowed fund. The CIF is comprised of 1,578 unique funds. Its market value at the end of the FY 2012-13 was $358.4 million. UNM President Robert G. Frank’s goal for the UNMF is to grow this amount to $500 million by 2020. Eventually, he would like to see it increase to $1 billion, to provide a substantial base for UNM’s
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future development and student success. “Our endowments are professionally managed, and we have an excellent history of performance, measured against other endowments our size,” noted Rodney Harder, CFO of the UNMF. “Last year we saw an 11.5 percent return, and we are well positioned for growth.” The minimum amount needed to set up a named endowment fund is $25,000. Initial thresholds increase according to the purpose of a fund. For example, a Faculty Fellowship requires a $100,000 gift; inaugurating a University Chair position begins at $1 million. Planned gifts and bequests are excellent means for initiating endowments. However, donors have many ways to express support by giving in any amount to existing general purpose endowments that provide critical funding to a variety of programs across campus, like these three:
“As the state’s largest academic library, we are committed to providing consistently excellent service and collections to a wide group of users.”
The Rosalyn Gethner Endowment for Native American Students “The Gethner Endowment provides scholarship aid to assist Native American students,” noted UNM Director of Student Financial Aid Brian Malone. “It benefits entering freshmen and law students, many of whom might be without funding, or be forced to borrow more, if not for this generous gift. I have seen the power of endowments at UNM. They provide a consistent source of funding indefinitely, resulting in an exceptionally impactful legacy that supports future generations.” Photos this page courtesy: UNM Archives
The Power of Endowment
Presidential Scholarship Program (PSP) Endowment for the 21st Century While currently 71 endowed scholarships are within the nearly $6 million Presidential Scholarship Endowment Fund that all benefit UNM’s Presidential Scholarship Program (PSP), this general endowed fund is not tied to a particular donor. “Growing the PSP Endowment for the 21st Century would mean that more of New Mexico’s brightest and most involved high school graduates could receive scholarships,” said Cathy Bunch, who manages the PSP for the UNMF.
The Endowment for UNM Libraries “This endowment enables us to purchase books, unique materials, special collections or innovative technologies for the benefit of all UNM students,” said Dean of University Libraries Martha Bedard.
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Interior of Zimmerman Library circa late 1940s.
To contribute to an endowment that interests you, including the three above, please contact Endowment Relations Manager Judith Davenport at Judith.Davenport@unmfund.org or (505) 277-9600.
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