Invest in the future of the University

An endowment is a self-renewing resource that the University holds in perpetuity (forever) and does not spend. Instead, endowed gifts are invested. It’s the earnings from these investments that help fund the donors cause.

Questions? Email us or call 217-333-0675.

How it works

Creating an endowed fund gives you an opportunity to put your name or the name of another person or organization on the endowment in memory or tribute. A minimum amount is usually required to establish an endowment, but in some cases, lesser amounts are accepted with the understanding that they will grow to the minimum amount within a reasonable period of time. 

Only part of an endowment’s average annual investment return goes to fund the donor’s specified cause. The remainder gets channeled back into the fund so that it grows over time.

If income in a certain year isn’t enough to cover the University’s budget, the necessary amount is taken from the pool. If income exceeds spending, the extra money goes back into the pool, increasing its value.

Each endowment is a source of permanent financial support above and beyond the income generated by student tuition and fees. As our endowment grows, so does our strength and stability.

Endowments help fund:

  • Faculty chairs and professorships
  • Graduate fellowships
  • Undergraduate scholarships
  • Program support
  • Visiting scholars/lectureships
  • Research support
  • Student internships

Current endowment

As of June 30, 2011, the University of Illinois endowment was $1.6 billion. Most of the endowed funds are held in pooled investment accounts supervised by the Investment Policy Committee of the Foundation Board and the Finance and Audit Committee of the University Board of Trustees.

The remaining endowments are invested in securities and gifts of real estate held for specified periods of time according to a bequest or other gift provision.

Administrative fee

Beginning in 1987, an annual fundraising operations fee was added to all invested accounts, including the endowment pool. For fiscal year 2012, the Endowment administrative fee is 1.2% of a six-year moving average of the market values of the pool. The fee is assessed to the pool, not the corpus of the individual fund.

Creating an endowment

An endowment can be created through an outright gift, through a bequest in a will, or through a life income gift such as a charitable gift annuity or a charitable remainder trust.

To minimize administrative costs, the minimum amount required to establish a separate, permanent endowment account is $25,000. As mentioned earlier, lesser amounts are sometimes accepted with the understanding that they will grow to $25,000 within a reasonable period, usually within three to five years.

In order to establish an endowment, you should take the following steps:

  • Contact the University of Illinois development staff.
  • Identify the kind of endowment you would like to establish (e.g. scholarships, annual giving, faculty or research support).
  • Identify your short- and long-term charitable priorities.
  • Review the various levels of endowment available and the minimum amounts needed to set them up.
  • Decide on a planned or an outright gift (e.g. cash, real estate, stock, bonds):
    • Outright gifts may be donated or pledged to establish your endowment fund and to help it grow over time.
    • Planned gifts (e.g. bequests in your will, a trust, life insurance, retirement plan assets) and/or deferred gifts from life income arrangements (e.g. gift annuities and charitable remainder trusts) may also be used to create your endowment or add to it at a later time.
  • Allow the University of Illinois Foundation to prepare a draft agreement outlining the purpose for the fund.
  • Review and sign the agreement along with a designated foundation official and the appropriate university administrators.

Questions? Email us or call 217-333-0675.

Endowing an annual gift

To endow an annual gift, include a bequest in your will stating that the money should be added to our endowment. When your gift is invested as part of the endowment, it generates a total return (income plus growth) along with the rest of the endowment. A portion of that return will be paid out each year in your name.

There are several different levels of endowment through which you can link your honoree’s name with the University’s most notable achievements. For a complete listing see endowment options.

Questions? Email us or call 217-333-0675.