Frequently Asked Questions
Q: What is an endowment fund?
A: An endowment fund is a permanent, self-sustaining source of funding. Endowment assets are invested. Each year, a portion of the value of the fund is paid out to support the fund’s purpose, and any earnings in excess of this distribution are used to build the fund’s market value. In this way, an endowment fund can grow and provide support for its designated purpose in perpetuity. When you establish an endowment fund, you create a permanent legacy of support for Duke.
Supporting Endowments
Q: How much money does it take to start an endowment?
A: The Duke Board of Trustees has set different minimum funding levels for different types of endowments:
- 100,000 will establish an unrestricted endowment for a particular school or division, such as the Pratt School of Engineering or the University Libraries.
- $300,000 will establish an endowment restricted to a specific purpose, such as faculty support within Arts & Sciences.
Financial Aid
- $100,000 will establish an unrestricted financial aid endowment, such as a scholarship supporting undergraduates or medical students.
- $300,000 will establish a restricted financial aid endowment, such as a scholarship that gives preference to biology majors or international students or soccer players.
Faculty Chairs
- $1,500,000 will establish an endowed chair to support a visiting professor.
- $1,500,000 will establish an endowed chair to support a professor of the practice.
- $2,000,000 will establish an endowed chair to support an assistant or associate professor.
- $3,500,000 will establish an endowed chair to support a full professor.
- $10,000,000 will establish an endowed chair to support a faculty member holding the distinguished designation of dean.
Athletics
- $1,000,000 will establish an endowment supporting an associate or assistant coach.
- $2,000,000 will establish an endowment supporting a head coach in a sport other than football or basketball
- $5,000,000 will establish an endowment supporting the head coach of football, men’s basketball, or women’s basketball
- $5,000,000 will establish an endowment supporting the athletic director.
Q: Whose name is on the endowment?
A: You can name an endowment for yourself, your family, your friend, your favorite former professor, your company – the choice is yours. Your endowment will be recorded as “The [Name of Your Choice] Endowment Fund.”
Q: What else does it take?
A: An endowment agreement. This agreement between the donor and the university permanently defines the purpose of the fund. The agreement also outlines Duke’s standard procedures for managing endowment funds.
Q: My lawyer knows about endowments. Can I have him/her prepare my endowment agreement?
A: Duke uses standard language for endowment agreements
to ensure consistency in management of the funds. As we work with you
to establish the endowment, we will discuss your preferences and
suggestions with you.
Q: Can I create an endowment fund with a gift through my estate plan?
A: Yes! In fact, many alumni and friends have established
endowment funds through creative estate and retirement planning. Duke’s
Office of Gift Planning can help you and your advisors explore what
options might be a good fit for you. Please note, that the minimum
funding levels listed above may increase in the future, and if they do,
the giving requirement in effect at the time that your gift is received
by Duke would apply.
Q: Do I need to sign an endowment agreement or meet a minimum gift level if I want to give to an existing endowment?
A: No. You can make a gift of any size to an existing
endowment fund without signing an endowment agreement. There may be an
existing endowment that reflects your interests and to which you can add
your support. Also, many donors who have established endowment funds in
the past continue making gifts to them over time. The larger a fund is,
the more it can do each year.
Q: How is the distribution from an endowment used? Are there any administrative assessments against endowments?
A: The spending distribution from each endowment fund
is used to support the purpose as specified in the endowment agreement
between the donor and the University. The University may assess
reasonable charges against the market value of and/or distributions from
the endowment to help defray certain expenses including development and
indirect costs associated with administering the endowment, such as
space and academic and administrative support.
Stewardship and Recognition
Q: How do I find out about my endowment after I have made my gift?
A: Once an endowment reaches the minimum funding level
and starts generating spendable income, Duke will provide you with
information about the value of the fund and the impact of your
philanthropy. Financial aid endowment donors will also learn about their
scholarship and fellowship recipients.
Q: Can I meet the students who benefit from my scholarship or fellowship?
A: In most cases, yes. Each year, the university hosts a
scholarship and fellowship celebration to bring together scholarship
and fellowship donors, recipients, and honorees. Duke Athletics also
holds a special event for athletic scholarship donors, and some of
Duke’s schools hold annual scholarship events as well. If you do not
have an opportunity to meet your student at a campus event, Duke’s
Office of Donor Relations can arrange a visit for you during some other
time when you are in Durham.
Investment Management
Q: Who manages Duke’s endowment assets?
A: Duke’s endowment assets are managed by DUMAC Inc., a professionally-staffed investment organization controlled by Duke University.
Q: Are there other investment options available to endowment donors, aside from the Long Term Pool?
A: There is an alternative investment vehicle, the
Social Choice Fund, which can be requested by the donor who establishes
an endowment fund. Each endowment fund is limited to one investment
choice – either the Long Term Pool or the Social Choice Fund. This is a
one-time election by the donor who establishes the endowment fund.
Download Endowment Giving to Duke:Frequently Asked Questions in PDF format here.