Types of Gifts
An endowment is a fund comprised of philanthropic gifts and other assets set aside and invested to provide permanent support for the University’s mission. The capital of the endowment remains intact, and returns are used to support a number of activities and programs. AUC manages more than 100 endowed funds to ensure that donor requirements are met and that the assets of these funds are invested to grow over time. The AUC endowment has historically earned comparable returns to other University endowments. A minimum of $50,000 is required to establish a new endowed fund at AUC.
AUC’s endowment is constructed as a diversified portfolio and invested across different asset classes such as stocks, bonds and alternatives. This diversified approach is designed to maximize return based on a prudent level of risk. AUC’s investment office selects and monitors professional, third-party investors who specialize in managing institutional assets. AUC’s endowment fund is governed by an investment committee of the Board of Trustees that reports regularly to the board. The trustees who serve on this committee are well-qualified to act as fiduciaries of these funds.
AUC’s current spending policy allows a maximum spending rate of 4.5 percent, calculated from the average of the past twelve quarters' ending market value, to be expended annually from current income and capital appreciation. Should the market value of an endowment drop below the amount contributed, spending will only be limited to the current interest and dividends income until the contributed value has been restored.
Current Restricted Funds
A current fund will provide immediate support for a research activity, an award or support for scholarships and fellowships. Once the money is dispensed, the fund will become inactive until an additional gift is made. A current scholarship and fellowship will support an undergraduate student for up to five years of study and a graduate student for two and a half years of study. Once the students graduate, AUC will not be able to award another scholar or fellow until a new fund is established.