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The generosity of alumni and friends has nourished
UM during its first 77 years and made possible extraordinary
achievements in teaching, research and public service.
Many of our donors realize that UM's strength
in the future depends on building a foundation through
endowments today.
What is an endowed gift?
An endowed gift is a gift that the University of
Miami holds in perpetuity. The gift is invested, and
only a portion of its average annual investment
return is used for purposes specified by the donor.
To guard against the eroding consequences of
inflation, the remaining investment return is added
to the principal. The goal is to ensure that the
principal maintains its value over time. Thus, a
donor who creates an endowed gift today can be
confident that it will grow and continue to support
UM in the years to come.
Can an Endowed Gift be Directed to a Specific
Area?
As with any gift to UM, an endowed gift offers
alumni and friends the opportunity to have their
names, or the name of a loved one, linked to an area
of the University in which they have a special
interest. Each donor's gift is a unique expression
of the causes and concerns that matter most in his
or her life. Some donors create unrestricted
endowments, recognizing that the needs and
challenges of the future will differ from those of
today.
Other donors choose to direct their gifts to
programs of special concern to them, knowing that
these additional funds provide an opportunity for
those programs to grow and excel. Some donors choose
to endow a professorship in the academic discipline
that inspired them as students. Many donors create
undergraduate scholarships or graduate fellowships
to aid deserving students. Others choose to support
medical research, in areas of particular importance
to them.
How are Endowments Managed?
Endowed gifts are invested in the University of
Miami's Growth Pool. The overall investment
objectives are:
- Preserve the portfolio's purchasing power
through asset growth in excess of the spending
policy, plus the rate of inflation;
- Invest assets in order to maximize the
long-term return while assuming a reasonable level
of risk.
Because the University is a permanent
institution, it has adopted stable, long-term
policies that increase the likelihood of achieving
its investment objectives. Under current policy
established by the Board of Trustees, five percent
of the three-year moving market value is used for a
fund's designated purpose. The remaining investment
return is reinvested in the fund to allow for future
growth.
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