Endowment FAQs

Endowment Basics
Endowments can be created with gifts of cash, securities, and other assets. They can be established through one-time gifts, estate gifts, and multi-year pledges. Although the minimum amount required to create an endowment is $25,000 (or $50,000 for a testamentary endowment), larger amounts are recommended or required for certain purposes. Gifts at these levels may offer donors naming opportunities. Anyone can make gifts to any endowment at any time.

To create an endowment
Contact the University of North Dakota Foundation by email to donorrelations@undalumni.net or by calling 800-543-8764 to reach a development officer, who will assist you and /or your professional advisor in creating a fund in accordance with your wishes. The development officer will help you draft, complete, and sign an endowment agreement outlining the endowment purpose.

What are the tax benefits of funding an endowment?
There is a federal tax deduction for charitable contributions. Some states, including North Dakota, give tax credit for gifts to endowments. If you pay income taxes in North Dakota, you may be eligible for a 40% state tax credit. Gifts of appreciated assets such as stock can be used to fund an endowment, saving capital gains tax. Consult your tax advisor to optimize tax benefits.

Can I choose what I want my endowment to support?
Yes. You may designate a purpose. Some alumni establish endowments in areas that are important in their life, others choose to name endowments in memory of loved ones or favorite professors. Endowments generally fund scholarships, faculty positions, academic programs and facilities.

How soon will my gift make an impact?
Payout policy determines how we make dollars available to support the purpose of your endowment. Each October, the payout is calculated for the upcoming fiscal year. This is calculated using the fund’s average market value from the previous 12 quarters invested (or the actual number of quarters invested, if fewer than 12) times the spending rate, which is determined annually by the UNDAAF Board, currently 3.75%. Endowment gifts received by December 31 will generate a payout the following October. The payout will be available for the next fiscal year.

How can I make an impact now?
You can make an additional gift to your endowment purpose at any time. Scholarship gifts received prior to January 31st will provide student support for the fall semester of the same year.

Who is responsible for managing my investment?
The UND Foundation is proud to work with SEI, our outsourced chief investment officer since July 2011. SEI has extensive resources and expertise and impressive performance track record. For more information on SEI, visit SEIC.com.

How will I know my endowment is making an impact at UND?
The UND Foundation manages more than 1,700 endowment funds. These funds result in an average annual impact to the University of about $11 million and growing. We provide an annual endowment report that illustrates your endowment’s activity. For scholarship endowments, you will also receive information about your scholarship recipient. You may request a quarterly report at any time by calling our office.

Is there a cost for managing my endowment gift?
University foundations across the U.S. apportion a small percentage of the gift as a fee for managing the gift and the endowment. At UND, an investment administration fee of 1.5% of the previous quarter’s market value provides discretionary support for the Foundation. Gifts and pledge payments made by credit card are subject to a 2.75% credit card fee.