An endowment is established with a minimum threshold gift of at least $25,000, which may include a pledge schedule of up to five years. By establishing an endowment, the money will provide a sustainable source of revenue for the intended purpose of the fund. The principal of the fund is invested to produce income, and the annual distribution is used in support of the purpose of the fund. The corpus, or principal, is never spent.
As the donor, you can establish an endowment in your own name or choose to name it for a family member, friend or a favorite faculty member. The donor and the Division of Development will agree to the terms of the endowment through a Memorandum of Understanding (MOU), which outlines the purpose/usage of the fund. For endowed scholarships, common criteria include financial need, academic achievement, or support of students who are pursuing a particular academic program. The Office of Donor Relations will draft the MOU and will work with the Development Officer and donor on finalizing an agreement.
Read more about endowments in The University at Albany Foundation.