Endowments
What is an Endowment?
The Ohio State University requires substantial, consistent and permanent funding and, by receiving such funds, the University can continue to provide strong academic programs and innovative technology. Endowment funds embody such a need. Gifts are invested in perpetuity, and distribution from the invested contributions is used to fund the desired activities. A portion of the income may be reinvested in the fund at the request of the donor or department to further enhance the fund’s buying power over time. All endowed fund gifts at Ohio State are pooled together with other long-term university assets to form the “Long-Term Investment Pool”. Within this pool are well-diversified investments that include:
- Equities
- Fixed Income
- Real Estate
- Private Equity
- Hedge Funds
Because endowments are intended by the donors to be permanent enhancements to the University, and because they are intended to fund important programs and activities, two important objectives guide the investment of the University Endowment Fund:
- To preserve and maintain the real purchasing power of the fund’s principal.
- To produce a return that would be described as acceptable by prudent money managers as compared to the current marketplace.
County Endowments
County 4-H endowments are permanent accounts, funded through individual donations, business and corporate contributions, and fundraising events. Each county has full control over the interest income generated by their endowment. County endowment funds support local 4-H programs through 4-H member scholarships and awards, educational workshops and resources, and volunteer training and support.
For more information on 4-H county endowments, click here.
Master Endowment
The Ohio 4-H Foundation Endowment distributes program grants annually and supports the administrative cost of the volunteer board. The endowment is pertinent to the success of Ohio 4-H and supports many important programs throughout the state. In 2008, 50 grants were awarded to county, district and state 4-H programs for a total of $178,090.
For more information on the 4-H Foundation endowment, click here.
Named Endowments
Donors can also set up named endowments in which the earned income is designated to the specific interest of the donor, whether it be a scholarship or specific program area.
For more information on named endowments with 4-H, click here.
Who Manages the Endowment?
The University strives to earn the highest possible return from interest, dividends, realized gains and market value increases while maintaining an appropriate level of risk. To do this, the services of external investment managers are utilized. Both the Office of the Treasurer and the Investment Committee of the Board of Trustees closely monitor the performance of the endowment portfolio with re-allocation occurring as needed.
How is a Fund Established?
New named funds are established by the Board of Trustees upon receipt of a gift of $25,000 or more for an unrestricted endowed fund and $50,000 for a restricted endowed fund. Endowment descriptions are approved by the donor, the University department that is proposed to administer the fund, and the Board itself. The endowment operates similar to a mutual fund. Each named fund is assigned a number of shares in the University Endowment Fund based on the value of gifts to that fund. Representing a uniform portion of the fund, each share is used to calculate the distribution to each named fund.
Learn more about endowments at the OSU Treasurer's website.
