Endowments

An endowment is a fund created by a donor who specifies that his or her gift be retained permanently, where only the fund's investment income is used for charitable purposes. The advantage of establishing an endowed gift to Auburn University at Montgomery, rather than a non-endowed gift, is the perpetual impact enabled by the endowment fund's continual earnings. A permanent source of income for Auburn University at Montgomery, endowments provide a steady stream of funding even in times of insufficient state support.

In managing endowments, the Auburn University Foundation invests the principal (supplied by the initial gift) and uses a portion of the annual investment income to support the purpose specified by the donor. The allocated earnings of an endowment are income payouts that are made annually in late January, based on December 31 values. The market value of endowments as of 6/30/05 was $328,660.979. Earnings over and above the annual expenditures and investment and administrative fees each year are retained as part of the fund, thereby increasing its market value.