The Foundation’s Board of Trustees has set different minimum funding levels for different types of endowments. Presently, $25,000 – which can be donated over a five-year period – is the minimum dollar amount to establish an endowment.
An endowment agreement. This agreement between the donor and the university permanently defines the purpose of the fund. The agreement also outlines the Clayton State University Foundation’s standard procedures for managing endowment funds.
You can name an endowment for yourself, your family, your friend, your favorite professor, your company – the choice is yours. Your endowment will be recorded as “The [Name of Your Choice] Endowment Fund.”
Do I need to sign an endowment agreement or meet a minimum gift level if I want to give to an existing endowment?
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.
From an investment perspective, the endowment's funds are pooled, or commingled, together in a manner similar to a mutual fund. The pooled investment fund is managed by professional investment managers and overseen by the Foundation's Investment Group. The Clayton State University Foundation utilizes unitized investment accounting, which permits individual endowment funds to retain their identity, while sharing proportionately in the earnings of the commingled investment fund. As a result of this pooling of funds, the endowment's investment portfolio is broadly diversified across many asset classes, thereby reducing volatility while maximizing performance. Diversification is the key driver behind the successful long-term growth of the endowment through market cycles.
Each year, a portion of the endowment’s earnings - a rule-of-thumb is 4% of the principal (or corpus) – are paid out. Any remaining funds earned throughout the year are placed back into the principal so the endowment grows at a real – inflation adjusted – rate.
Once an endowment reaches the minimum funding level and starts generating spendable income, the Clayton State University Foundation will begin sending you annual reports detailing the value and use of your endowment fund. When you establish an endowment at Clayton State, you begin a new relationship with the University, and the Foundation will write to you -- and later to your family -- every year with an update on what your gift is making possible.
Clayton State University’s endowment assets are managed by the Foundation’s Investment Committee which is charged with the responsibility of overseeing and monitoring the investment of all assets under its stewardship. Committee members adhere to UPMIFA and other such laws and regulations that apply now or in the future to the prudent investment of assets and the application of an appropriate spending policy.