Endowment

The Kalamazoo College Endowment

Kalamazoo College’s endowment supplies a permanent stream of income to support our liberal arts mission. By way of scholarships, faculty excellence, experiential learning and special programs, K’s endowment provides the vital resources that empower students to achieve and faculty to excel.

Giving to the Endowment

There are several ways to support K’s endowment. Like any gift, you can give once, on a recurring basis, over multiple years, and through your estate. Gifts can support already established endowment funds, pooled funds in support of strategic priorities, or you can create your own fund.

Frequently Asked Questions

What is an endowment exactly?

K’s endowment refers to assets, primarily comprised of philanthropic gifts, invested for the longterm. When you create an endowed fund, you “buy into” shares of the endowment pool. Values of the shares fluctuate depending on a 12-quarter rolling average of investment returns. In accordance with policies set forth by the Board of Trustees, an annual distribution typically around 5% is available toward the fund’s designated purposes.

How can I endow a fund?

Gifts of any size can be made toward existing endowed funds including several pooled funds for strategic priorities, general scholarship or unrestricted endowment. For named funds Minimums for named funds vary depending on the area of support. Please contact us to learn more.

Pooled Funds

Several funds can be created to assist donors in “pooling” their gifts to support areas of strategic importance such as scholarships, study abroad and faculty competitiveness. These funds, made up of many gifts at various sizes by many donors, make a large impact supporting K’s mission-driven priorities.

Estate Gifts

Endowment gifts can be planned for through your estate. You can also create an endowed fund today with an immediate gift and add to the fund through your estate.

Name an Endowment Fund

An endowment can be named for yourself, your family, a friend or favorite professor, your company – there are many naming options available. Others can make gifts to your endowed fund and will be documented in the fund agreement that others are allowed to give to your fund

What happens to the funds?

When are the funds available for use?

Funds are awarded in accordance with distribution policies set forth by the Board of Trustees. Generally, an annual distribution can be made in the succeeding fiscal year.

Input on the awarding of endowed funds

Donors are able to create a set of preferences to be used in the awarding of their named endowed fund. In order to comply with gift policies and IRS regulations, donors may not specify or select a specific individual student or recipient.

Endowment terms to know

Book (Historic) Value

The book (historic) value represents the current balance of the principal account – the amount received in gifts to the fund.

Endowment Spending Rule

The spending rule is a formula used to determine the endowment payout each year. It is calculated in accordance with the policies set forth by the Board of Trustees.

Fund Agreement

A fund agreement is a formal document signed by the donor(s) and the College that defines the purpose and guidelines of the fund. It also outlines the College’s responsibilities for managing the fund. Fund agreements are required for any new endowed fund.

Market Value

The market value is the net value of the book value plus or minus any unrealized gains or losses. This is the figure used to calculate the annual draw.