Endowments are crucial to Auburn Montgomery’s future growth and success because of their longevity. Endowment funds differ from other funds in that they are truly “the gifts that keep on giving.” Instead of the entire amount of the gift being spent outright, the total amount of an endowment gift is invested. Each year, only a portion of the income earned from the investment is spent and the remainder is added to the original principal. Endowments are perpetual gifts because only the interest they earn is used to support the university and the principal continues to grow. An endowment gift is a great way to forever link your legacy with the future of Auburn Montgomery.
Endowment dollars enable Auburn Montgomery to recruit and support bright students and exceptional faculty by providing a steady, consistent and permanent source of income. Such funds also strengthen our ability to grow and nurture scholarship funds. Consistent funding allows administrators and faculty assurance to expand various fields of study. Endowments may be established to support student scholarships, graduate fellowships, endowed chairs or professorships. They may also be directed toward equipment or library purchases or outreach opportunities. Finally, endowments may be established to provide unrestricted funds for excellence, which enable Auburn Montgomery to support areas with great promise or need and seize timely educational opportunities.
Why Should I Make an Endowed Gift?
Considered one of the sources of funding with the most impact, endowments enable Auburn Montgomery to support excellent students, teachers, and programs by providing a steady and permanent source of income. This steady stream of funding assures the university’s ability to recruit and retain the best and brightest students and faculty and provide access to the most advanced education possible.
The Endowment Process
Most individuals find it pleasantly surprising to learn how easy it is to establish an endowment at Auburn Montgomery. Our advancement professionals will guide you through this simple process, but we’ve listed the basics here:
Endowed funds may be created with a minimum gift of $25,000, payable over five years, or through a future gift (a bequest) from your estate.
Advancement staff will work with you to establish guidelines for your endowment to ensure that your wishes are met. These guidelines can be personalized to recognize your unique interests and the intent of your gift. You may establish the endowment in your name, to honor a family member, or in memory of someone special to you.
Once your endowment is established, a portion of the investment income is available for spending, while the remainder is reinvested. The current endowment spending policy allows the university to spend three to six percent of the average market value of the endowment over the prior three calendar years.
With your gift or pledge to create an endowment, you will be eligible for recognition in one of Auburn Montgomery’s donor societies.