Endowment FAQs

Endowment Basics
Endowments can be created with gifts of cash, securities, and other assets. They can be established through one-time gifts, estate gifts, and multi-year pledges. Although the minimum amount required to create an endowment is $25,000 (or $50,000 for a testamentary endowment), larger amounts are recommended or required for certain purposes. Gifts at these levels may offer donors naming opportunities.
 
To create an endowment
  • Contact the University of North Dakota Foundation by email to donorrelations@undalumni.net or by calling 800-543-8764 to reach a development officer, who will assist you and /or your professional advisor in creating a fund in accordance with your wishes
  • The development officer will help you draft, complete, and sign an endowment agreement outlining the endowment purpose.
 
What are the tax benefits of funding an endowment?
There is a federal tax deduction for charitable contributions. Some states, including North Dakota, give tax credit for gifts to endowments. If you pay taxes in North Dakota, you may be eligible for a 40% state tax credit. Please consult your own professional advisors on how any charitable gift may affect your own tax situation.
 
Can I choose what I want my endowment to support?
Yes. You may designate a purpose. Some alumni establish endowments in areas that are important in their life, others choose to name endowments in memory of loved ones or favorite professors. Endowments generally fund scholarships, faculty positions and academic programs.
 
When will my gift start making an impact?
Spending policy determines how we make dollars available to support the purpose of your endowment. Each December 31, we make available for the upcoming fiscal year, a portion of each endowed fund’s value – currently 3.75%. This is calculated using the fund’s average market value from the previous 12 quarters (or the actual number of quarters invested, if fewer than 12). Endowment gifts received by December 31 will generate a payout the following December 31.
 
How can I make an impact now?
While your endowment is investing, you can make an additional impact gift to serve as the payout. Impact gifts received prior to January 31st will provide student support for the fall semester of the same year.
 
Who is responsible for managing my investment?
The UND Foundation is proud to work with SEI, our outsourced chief investment officer since July 2011. Among the reasons SEI was selected was the firm’s extensive resources and expertise and impressive performance track record. 
 
How will I know my endowment is making an impact at UND?
The UND Foundation manages more than 1,600 donor-established funds. These funds result in an average annual impact to the University of about $9 million and growing. We provide an annual endowment report that illustrates your endowment’s activity. For scholarship endowments, you will also receive information about your scholarship recipient. You may request a quarterly report at any time by calling our office.
 
Is there a cost for managing my endowment gift?
University foundations across the U.S. apportion a small percentage of the gift as a fee for managing the gift and the endowment. At UND, an investment administration fee of 1.5% of the previous quarter’s market value provides discretionary support for the university and the foundation.
 
Does the Foundation charge any other fees on gifts?
The Foundation does not charge a fee on gifts* given to the endowment. This means that 100% of an endowment gift will be placed in the endowment fund to grow and be used for the donor’s designated purpose.
 
*Gifts and pledge payments made by credit card are subject to a 2.75% credit card fee.