Endowments

Endowments
Endowments are an excellent long-term strategy for ensuring an annual funding stream to sustain and grow programs. They can be established for counties, statewide programs, and Research and Extension Centers as well as for statewide initiatives, positions, and research areas. Unlike “current use” funds, endowed funds are designed to grow over time, the principal balance remaining untouchable.

To receive a meaningful annual payout, the principal balance must be significant in size and proportionate to the purposes of the fund. The annual payout for all UC endowments is based on 4.450% of the value of the fund (rate established by the UC Regents). Therefore, for example, a $100,000 endowment provides an estimated annual payout of $4,450. Payouts are based on a 60-month rolling average to ensure a consistent and stable flow of income, reducing the impact of market volatility.

Establishing an Endowed Fund
A minimum investment of $25,000 is required to establish an endowed fund (estimated annual payout of $1,125). These funds can be raised through a targeted fundraising campaign or received through an individual gift or from a bequest or planned gift. Our team will work with you to define the purpose and goals for the endowed fund and determine the best strategies for securing contributions. Once the minimum threshold is met, we will request the establishment of the fund. Endowed funds can ONLY be used for the purpose specified in the endowment terms; they cannot be appropriated for another program or purpose.

Endowment Investment and Payouts
University of California endowments, including those belonging to UC ANR, are invested as part of the General Endowment Pool (GEP), overseen by the Chief Investment Officer of the UC Regents. UC ANR is not involved in investment strategies. Payout rates are reviewed annually and defined by the Regents, adjusted based on the overall return. Payouts are received once/year, usually in September after the fiscal year closes.

For more information or assistance with establishing an endowed fund, please contact our Development Services Team at (530) 750-1389 or gifts@ucanr.edu.