Welcome to the Texas State University Endowment

YOUR INVESTMENT

DEMONSTRATES YOUR COMMITMENT TO MAKING A LASTING IMPACT

YOUR ENDOWMENT

Welcome to the Texas State University Endowment. Your commitment to serving others by establishing an endowed fund at Texas State plays a vital role in shaping the university’s landscape, from fostering expert leadership and achieving athletic excellence to driving innovative research and establishing academic centers that extend their impact to our community, state, and nation. Your generosity is a cornerstone on which we build a brighter future.

With your endowed gift, we’re empowered to position Texas State as a global hub that attracts the best and brightest minds from around the world. Your philanthropic vision aligns seamlessly with our mission.

Your trust in us carries great significance and we are dedicated to managing your fund according to your vision. It is our unwavering goal to surpass your expectations by demonstrating our meticulous stewardship of your investment and ensuring its far-reaching influence.

By establishing this endowment, you exhibit a profound commitment to creating a legacy that resonates with your philanthropic aspirations. Thank you for your transformative generosity. Your partnership propels us toward a future of promise and possibility.

FUNDING YOUR PHILANTHROPIC PASSION

CREATING AN ENDOWMENT DEMONSTRATES YOUR COMMITMENT TO MAKING A LASTING IMPACT.

In return, TXST promises to be a good steward of your investment and to spend the funds in a transparent manner that aligns with your philanthropic intentions.

To better understand how we distribute funds to support your goals, it is helpful to know and understand the TXST distribution policy. The principal gift that establishes an endowment is always preserved, with only the investment income distributed annually to support the fund’s purpose. Earnings in excess of this distribution are used to build the fund’s market value. Donated funds (the principal) are invested to generate income. Earnings are distributed annually to designated accounts. For the TXST Foundation endowment, earnings are calculated as 4% of the preceding 12-quarter average market value of Foundation assets.

For more specific information about the endowment’s fees and investment structure, please visit the Texas State University Development Foundation (TXST Foundation) website: www.ua.txst.edu/about/development-foundation

FOR EXAMPLE

A $100,000 endowment that was established with the TXST Foundation in 2017 will provide a $4,800 payout while an endowment established in the same amount in 2019 will provide a payout of $4,400. Endowments established in a performing market will distribute funds within two years.

The TXST Foundation fees include a 1.5% annual fee to cover administrative operating costs of the Foundation and the investment consultant (Cambridge and Associates) and the institutional investment assessment, a one-time 5% investment assessment to improve University Advancement’s capacity to increase philanthropic giving to Texas State. The assessment partially defrays the cost to upgrade reporting systems, supports the growth and efficiency of fundraising operations, and is a common practice among our peers.

ENDOWMENTS AT WORK

ENDOWMENTS REFLECT YOUR PRIORITIES AND GOALS AND STAND AS AN ENDURING TRIBUTE TO YOUR GENEROSITY. They provide a permanent source of financial stability, while enhancing TXST’s prestige. These investments support the university in four major areas of need: Students (scholarships, enrichment programs, and support services), Academic Excellence (faculty endowments, research, and program endowments), Athletics (scholarships, programs, and facilities), and Campuses (new buildings and renovation).

OUR RESPONSIBILITY TO YOU

TO DEMONSTRATE FISCAL RESPONSIBILITY AND ACCOUNTABILITY, the University Advancement team generates annual endowment reports (AERs) for the individuals who establish and support these critical funds. Donors receive an annual report packet that will be emailed or mailed containing:

• Financial report(s)

• Message from key university leadership

• Letters from students if you have established an endowed scholarship

• Fund utilization report if you have a program, faculty, or other type of endowment

Annual reports are sent out each November for the prior fiscal year. Donors with new endowments can expect to receive their first AER 12 to 18 months after establishing the fund, depending on the month when the initial investment is made.

FREQUENTLY ASKED QUESTIONS

WHEN WILL I RECEIVE MY ANNUAL ENDOWMENT REPORT?

12 to 18 months after establishing the fund, for the first report. Each following year, donors can expect their annual endowment reports to be sent to their email address if they have one or in the mail if preferred. Annual endowment reports will arrive in late fall.

WHO CAN I CONTACT IF I HAVE QUESTIONS ABOUT MY FUND?

University Advancement is available to discuss information in your report. They may be reached at 512-245-2396 or by email at GiftCompliance@txstate.edu

WHO MANAGES THE INVESTMENT OF THE FUNDS?

Endowments are held and managed by the TXST Foundation a not-for-profit 501(c)(3), or for University Endowments, Texas State University System (TSUS). The principal gift that establishes an endowment is always preserved, with only the investment income distributed annually to support the fund’s purpose. Earnings in excess of this distribution are used to build the fund’s market value. Donated funds (the principal) are invested to generate income. Earnings are distributed annually to designated accounts and are calculated as 4% of the preceding 12 quarter average market value of Foundation assets. Please visit the TXST Foundation website to see the Statement of Investment Policy approved by the TXST Foundation Board of Trustees. The TXST Foundation Board provides oversight and approval of the investment strategy executed by the TXST Foundation investment consulting firm Cambridge and Associates. For University held endowments, the TSUS Investment Policy is executed in conjunction with the investment consulting firm, Fund Evaluation Group (FEG).

WHAT IS THE ENDOWMENT INVESTMENT STRATEGY?

The long-term investment strategy of Texas State is to earn a return sufficient to preserve the purchasing power of the endowment for generations to come, as well as providing for current university priorities.

I ESTABLISHED A SCHOLARSHIP. MAY I PICK THE RECIPIENT?

Scholarship recipients are determined by the college or departmental selection committee(s) and the donor provides the criteria for selection of scholarship recipients in their Memorandum of Understanding agreement. Donors are informed about the recipient(s) but are not involved in the selection process.

MY ENDOWMENT FUNDS THE WORK OF A FACULTY MEMBER. HOW DO I CONTACT THE FACULTY RECIPIENT OF MY ENDOWMENT?

Your development officer or the Gift Compliance department can provide the contact information for your endowed faculty member. A report will be provided with your AER from the endowed faculty member showing how the endowment funds were utilized during the reporting period of the AER. TXST encourages regular communication between faculty and donors, depending on the wishes of the donor.

HOW DO I KNOW THE FUNDS ARE BEING SPENT IN ACCORDANCE WITH MY INTENTIONS AND OBJECTIVES?

Compliance with donor intent is one of Gift Compliance’s fundamental responsibilities, and many areas of the university are dedicated to safeguarding our donor’s objectives. University Advancement helps to establish gift purpose at the outset, through a Memorandum of Understanding, estate documentation, or other evidence clearly documenting donor intent, and ensuring your gift is held in a fund for that purpose. Gift Compliance oversees and annually compiles a report to be provided with your AER from the endowed faculty member showing how the endowment funds were utilized during the reporting period of the AER or letters from students if you have established an endowed scholarship.

IS IT POSSIBLE TO SEND MY ENDOWMENT REPORT TO OTHERS?

Yes, the TXST University Foundation is happy to send annual endowment reports to individuals of the donor’s choosing. Please complete the survey at the end of your endowment report to indicate the name, email address or address, and phone number of the individual(s) who should also receive future reports.

OUR PLEDGE TO YOU: THE DONOR BILL OF RIGHTS

PHILANTHROPY IS BASED ON VOLUNTARY ACTION FOR THE COMMON GOOD. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights:

• To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.

• To be informed of the identity of those serving on the organization’s governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.

• To have access to the organization’s most recent financial statements.

• To be assured their gifts will be used for the purposes for which they were given.

• To receive appropriate acknowledgment and recognition.

• To be assured that information about donations are handled with respect and with confidentiality to the extent provided by law.

• To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.

• To be informed whether those seeking donations are volunteers, employees of the organization, or hired solicitors.

• To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.

• To feel free to ask questions when making a donation and to receive prompt, truthful, and forthright answers.

The text of this statement in its entirety was developed by the American Association of Fundraising Counsel (AAFRC), Association for Healthcare Philanthropy (AHP), Council for Advancement and Support of Education (CASE), and the Association of Fundraising Professionals (AFP), and has been adopted by the TXST Foundation Board of Directors.

THANK YOU

WE ARE PROFOUNDLY GRATEFUL FOR YOUR GENEROSITY, YOUR SPIRIT, AND YOUR PASSION TO MAKE TEXAS STATE UNIVERSITY THE BEST THAT IT CAN BE.

Your recent endowment gift shows that you understand the value of financial stability for Texas State University. Your generosity enables us to cover essential costs, fund vital research, and honor the traditions of excellence and integrity that have always been at the heart of the TXST experience.

Your gift also demonstrates that you believe in the power of TXST to make the world a better place. That commitment uplifts our professors, researchers, and students as they continue to RUN to R1. The extraordinary work that is taking place at our university would not be possible without visionaries like you — people who say “yes” to creating profound, lasting change.

For all the things that you are, believe, and the difference that you have made: