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Our Endowment Fund Facts

WHAT IS AN ENDOWMENT FUND

An Endowment Fund is a sum of money given by a donor to be used for a term agreed to by UWIDEF and the donor. eg. scholarship support, infrastructural development, research grants.

The principal of this sum is held in perpetuity and invested and from which an organization may use only the return on investment.

It can be a permanent fund in one’s name, in the name of an honouree, or in a name that is meaningful to someone wishing to set up endowment. Endowment funds provide a predictable stream of income, providing a base upon which present programs can be built, and making long range planning possible. This type of fund protects the charity in years when other income may be reduced.

TYPES OF ENDOWMENT FUNDS

A fund from which UWIDEF may take either the annual return or some portion of the principal for use as needed. This could be use for both project related expenses or administrative expenses.

A gift that allows UWIDEF the flexibility to use the return on investment as best serves the immediate needs of the University of the West Indies.

With this type of endowment the donor/s can choose to endow a specific program or the gift may fund the organization’s recurring need.

A Few Examples Include:

  • Program endowment: A gift to a particular program within the organization that secures its future. For example, someone or an organization might wish to endow the operating or maintenance cost of a specific program or facility to ensure that it is sustainable.
  • Named Memorial Endowment: An endowment fund named for an individual being commemorated by the donor/s. For example, an endowment may be named to honor an individual’s long affiliation with and contribution to the university.
  • Scholarship Endowment: A fund that endows scholarships. Some donors may wish to underwrite scholarship funds in perpetuity. Currently many individuals and corporations contribute to annually to scholarship and grants however; an endowment removes the need for annual contribution.(See benefits of an endowment fund below)

BENEFITS OF AN ENDOWMENT FUND

Long-term growth

An Endowment Fund offers a solid base of funds that will be available now and in the future. The funds continue forever since only the interest earned is spent, allowing the fund to continue in perpetuity. Fund earnings that exceed yields specified for expenditure are returned to the principal, hedging against inflation and providing growth of the fund for the future. Even without additional contributions, a fund will continue to provide support, while the amount of both the principal and the awards increase over time.

For example, if a donor provided an un-endowed gift of $250,000 and designated it for undergraduate students’ scholarships on a
yearly basis, at the end of twelve years, the donor would have donated $3,000,000.00. If the donor provided $3,000,000.00 as a single endowed gift, this money would remain as an investment and an annual scholarships of $150,000 would be given from the fund earnings. At the end of a similar twelve year period, this fund would still be giving annual scholarships and would have grown in value, even without further contributions.

Significant tax advantages

When donors make contributions to a recognized charitable organization such as UWIDEF, donors receive tax benefits in the form of charitable deductions.

Builds a Legacy

The donor has the ability to establish a permanent legacy in someone’s name or in the name of a loved one. The donor can help ensure the sustainability of the areas of study and programs that have been most important to the donor. An endowment provides the donor with the opportunity to create a legacy that connects future generations of a family or business to the causes that are important to the donor.

Stewardship you can trust

Your legacy will be professionally managed and your charitable intent will be fulfilled. All donors are provided with a profile of the student selected and an annual report on the progress of the student while studying at UWI.

The UWI Development and Endowment Fund, now in existence for 25 years, has a proven system and track record to ensure that your investment in the University is safe. The Board of Directors and staff members have long experience and diverse skills including finance and investment, academia, manufacturing, construction and project management. These members have the wealth of knowledge to ensure proper stewardship, accountability and management that facilitates a strong endowment fund.

A recognised charitable organization in Jamaica and the United States, donations to the UWIDEF Mona are tax exempt in these countries.