Endowed Gifts

Creating an Endowment

Endowments are a particularly powerful investment in WSU’s future because they deliver a dependable, perpetual source of funding. The WSU Foundation Endowment is composed of nearly 2,000 restricted funds established by donors for specific purposes, such as named scholarships or professorships. Endowed funds are unique in that 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.

For more information about creating an endowment, contact the WSU Foundation at 800-448-2978 or foundation@wsu.edu. Once you decide to create an endowment, a development professional will work closely with you to help define the features of your endowment to meet both your wishes and the needs of the University.

How Endowed Gifts 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 $50,000, 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 $50,000 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.

Endowment Performance

For the Fiscal Year ending June 30, 2023, total WSU Foundation endowment pool assets increased $29 million from $634 million to $663 million. Total return for the Foundation’s endowment during Fiscal Year 2023 was an increase of 7.5 percent. Additions to the endowment during this period totaled $17 million, and the WSU Foundation distributed $25 million from the endowment in support of programs across Washington State University.

Investment Strategy

WSU Foundation consolidates all funds available for long-term investment in its Endowment Fund, with the exception of funds restricted by law or by special donor limitations. This fund is the investment pool for approximately 2,716 privately endowed funds supporting a wide variety of education, research, and service programs across Washington State University.

The WSU Foundation’s Endowment Fund actual asset allocation as of June 30, 2022 is as follows:

The investment objectives of the Washington State University Foundation’s Endowment Fund reflect its long-term nature. It is recognized that the desire to grow endowment gifts and to produce a large, stable, and predictable payout stream involves tradeoffs that must be balanced in establishing the investment and spending policies. Considerations that shape the Endowment’s objectives include:

• Producing a relatively predictable and stable payout stream to WSU’s programs that are supported by endowment funds;
• Increasing the inflation-adjusted value of the endowment in the long term, while assuming only moderate risk;
• Balancing the support of present and future generations of students and faculty.

Donors may designate an endowed gift to create a new fund or contribute to an existing fund. These funds are held in perpetuity by WSU Foundation and are invested with other funds that comprise the WSU Foundation’s Endowment to promote growth over the long term and to protect against inflation. A portion of each fund’s value – currently 4.0% of a three-year rolling average – is made available each year to support the designated program.

Endowment Management & Fees

In accordance with the WSU Foundation’s bylaws, the WSU Foundations Endowment is managed by the Investment Committee. The Investment Committee is responsible for investments, reinvestments, and general management of the endowment. The committee establishes policies for investing capital, monitoring, and reviewing investment performance, establishing appropriate benchmarks, and managing the investments to maximize the endowment’s financial potential while minimizing risk. The WSU Foundation contracts with Mercer LLC for investment consultant services.

Annually, a 1.5% Advancement Fee is charged to the WSU Foundation Endowment. This fee is paid out quarterly and is calculated based on the 36-month rolling average of the Endowment’s market value. There are other costs associated with the Endowment such as investment management fees, custodial costs, and consulting expenses.

If you have questions about the WSU Foundation’s fee structure, please call 800-448-2978.

Endowment Naming Opportunities

(based on the following minimum levels)

Naming Opportunities	Minimum Gift Amount*
College	$15,000,000*
School	$10,000,000*
Department/Program	$5,000,000
Deanship/Chancellorship	$5,000,000*
Distinguished Faculty Chair	$3,000,000
Faculty Chair	$2,000,000
Professorship	$1,000,000
Faculty/Staff Fellowship	$100,000
Faculty/Staff Excellence Award	$50,000
Graduate Fellowship	$100,000
Graduate Scholarship	$50,000
Undergraduate Scholarship	$50,000
Other/Minimum Endowment Level	$50,000
*Valuation required at time of proposal.

In addition to WSU Foundation recognition programs, many of WSU’s colleges and units recognize their supporters in a variety of ways including online, on donor walls, and in special publications. Please contact the development offices within specific areas to learn more about additional recognition opportunities.