An Investment in the Future

Like all gifts to Washington State University, endowed gifts contribute to the high quality of education, research, and outreach. Endowments are particularly powerful because they deliver a dependable, perpetual source of funding. Your gift to establish an endowment is an investment in the future—an investment that makes a real difference in the lives of our students, faculty, and staff by enhancing their education, research, programs, and overall academic excellence every day.

WHAT IS AN ENDOWMENT?

The WSU Foundation’s endowment is composed of hundreds of restricted funds established by donors for specific purposes, such as named scholarships or professorships. Endowed funds are unique in that the total amount of the gift is invested. Each year, a percentage of the endowment’s 36-month rolling average is distributed to benefit the University. The rest is re-invested to ensure growth, maintaining the fund’s spending power far into the future. In this respect, an endowment is intended to be a perpetual gift.

Considered a measure of an institution’s long-term strength, endowments are essential if we are to remain leaders in education, research, and outreach. An endowed fund can also be established through an estate or planned gift and is a great way to link your legacy with WSU’s future.

WHY SHOULD I MAKE AN ENDOWED GIFT?

The WSU Foundation’s endowment market value has doubled since 1997 to total $318.1 million on June 30, 2012. However, it remains significantly lower than endowments of institutions with which WSU most often competes for faculty and students. Closing this gap will bolster our competitiveness to hire and retain the best faculty and to attract a talented and diverse student body. Endowed contributions—from alumni, friends, parents, faculty, staff, corporations, and foundations—will help WSU realize the educational and research ambitions that citizens and industries expect from their state’s land-grant university.

HOW DOES IT WORK?

Establishing an endowed fund at WSU is easy. A development officer will guide you through the process and discuss options that fit your situation. Generally, the procedure for endowing a fund is as follows:

  • With a minimum gift of $25,000, you can establish an endowment at the WSU Foundation for the benefit of Washington State University. Options are available to allow you to reach the $25,000 minimum over time.
  • The use and purpose of the endowed gift is documented in a written Gift Use Agreement (GUA) between the donor, WSU, and the WSU Foundation. Once established, your endowment fund will be used exclusively for the purpose outlined in the GUA.
  • Your endowment is prudently invested along with all endowed funds at the WSU Foundation. The Foundation’s investment portfolio is diversified to provide healthy long-term returns that should outperform the general market over time while minimizing losses during market downturns.
  • Each year, a percentage of your endowed fund’s 36-month rolling average value is distributed to benefit WSU as designated in the GUA. Investment growth beyond the annual expenditure to the University and advancement fee is added to the principal to help protect the fund against inflation and market fluctuations.