What is an Endowment?
An “endowment,” or “endowed fund,” is created by donors to provide long-term sources of funding. Endowments can be very specifically focused or they can be generally designated for the most critical research needs. Endowments are permanent funds in which the principal is held in perpetuity and only the interest generated by the principal amount is expended annually.
Privately endowed funds of $2 million and more are designated as “endowed chairs or programs.” Endowed chairs and programs allow the UA Zuckerman College of Public Health to attract and retain faculty who have earned national distinction in public health. Endowed chairs draw outstanding scholars by creating an environment that fosters collaborative inquiry among faculty and students, with the interest income from these funds allowing researchers to continue scientific pursuits unabated.
An endowed fund is established through a minimum gift of cash or stock totaling $25,000. Endowed funds also may be created through a number of planned giving vehicles.
How does an endowment work?
Endowment gifts provide an ongoing source of support for a position or program. The corpus of the gift is never spent. It is invested, and a portion of the income (payout) is made available each year to support the designated program.
Endowment payout rates are set each year by the University of Arizona and the University of Arizona Foundation and may change from year to year.
Donors may wish to support research, education, scholarships or community programs. Endowment funds are established for a variety of purposes, such as Faculty Chairs, Student Endowed Scholarships, and Research Endowments.
What are the Benefits of Establishing an Endowment?
- Serves as a permanent named tribute
- Ensures continued progress toward health promotion and elimination of health disparities
- Provides for future generations
- Continues tradition of helping those in need
- Perpetuates your enduring vision
Naming Opportunities
An endowment or scholarship may be named in honor or in memory of an individual, colleague, or a loved one. Also, an endowment can be named for an organization, foundation or corporation. In addition, Roy P. Drachman Hall, our new home offers numerous opportunties to honor, memorialize or commemorate individuals, groups and corporations.
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