What is an endowment?
An endowment is a permanent investment in the future of Wayne State College. Endowment funds are invested, rather than used as cash for immediate needs. The amount given by the donor (principal) is never spent. A portion of the earnings from the endowment fund is distributed annually for the donor’s intended purpose, such as an endowed scholarship. The undistributed earnings stay in the fund, thus growing the endowment and allowing for larger distributions in the future. Most of the Foundation's endowments are for scholarships, but other funds support specific college departments or even campus beautification. At the time the donor makes a gift, the Foundation prepares an agreement that documents the donor's intended use of the endowment fund.
The Wayne State Foundation Executive Committee establishes policies to determine the amount of the endowment that is to be made available to be awarded from endowment earnings. The current policy sets the payout target rate at up to 4% of the average market value of the endowment fund over the prior three fiscal years.
A minimum of $25,000 is required to fund an endowment. Donors can choose to spread their contributions over a period of up to five years.