An endowment is one of the most significant ways you can support the University of Missouri-Kansas City.
Of all forms of private giving, endowments are some of the most influential investments for higher education by providing both an immediate and continuous impact on the university. Endowed funds allow for permanent financial foundations that create living legacies that span generations. The UMKC Foundation’s endowment pool produces earnings to support scholarships, professorships, program support, research and other learning opportunities. This is an essential perpetual funding component in the midst of budget fluctuations and the economy as a whole.
Donors who establish endowed funds have the opportunity to determine the specific purpose of the fund. The UMKC Foundation endowment pool is made up of more than 300 individual endowed funds, most of which have specific purposes at UMKC. Endowment income provides a margin of excellence for the university by enhancing tuition revenue and unrestricted state funds.
Endowment Performance Reports
Endowment donors are able to see their gifts inspire and strengthen the university. In addition to making the UMKC Foundation Endowment Pool Report available, the foundation sends all endowed donors individual reports on their investments describing the financial performance of their gifts, how their gifts enhance the foundation’s investments and the impact of their gifts on the university.
Investment Management
The primary investment objective of the UMKC Foundation endowment pool is to exercise fiduciary responsibility while maintaining the purchasing power of the foundation’s endowment pool to meet current and future spending requirements. The endowment pool must be managed properly in order to provide ongoing support of endowed programs in perpetuity. The Finance and Investment Committees evaluate investment performance at least annually and propose changes, if necessary, to the UMKC Foundation board of directors. The committees provide high-level guidance on emerging markets and trends in institutional investing and evaluate the investment portfolio to ensure it is balanced with an appropriate level of risk. Additional information can be found in the UMKC Foundation Endowment Pool Report.
Spending Policy
The spending policy is set to protect and grow the value of the endowment pool for the future, as well as provide immediate income for the current year. The endowment pool must continue to grow in perpetuity to preserve the quality and health of the university and its programs. The endowment pool spending policy formula, used for distributions from the endowment pool, applies the distribution rate to a base of a trailing twenty-eight quarter average of the endowment’s total market value as of December 31st of the prior year. This annual calculation allowed for semi-annual distributions to the university in order to align with the scholarship awarding periods in the academic year.
The spending distribution rate is in transition to be lowered from 4.5% to 4.0% over a period not to exceed the six years ended June 30, 2024, dependent upon market returns. The decrease is consistent in maintaining the purchasing power of each endowment.
An administration fee is also assessed each fiscal year in support of the UMKC Foundation’s development functions. The administrative fee is calculated with a rate of 1.25% to the endowment’s total corpus market value as of December 31st of the prior year.
Establishing an Endowment
A minimum gift of $25,000 is required to establish an endowment. A minimum gift to establish a professorship is $750,000; an endowed chair requires a minimum gift of $1.5 million.