Endowments

What is an endowment?

An endowment creates financial stability, allowing an institution to be less dependent on unpredictable sources of revenue, such as research sponsorship or government aid.

A named endowment is created through the establishment of a permanent fund that is professionally invested and managed. The income generated is used to carry out the endowment's stated purposes – the mutual goals of a donor and the university.

An endowment is awarded once the principal reaches the minimum required funding level and after the funds have been invested one full year. If the donor, family member or other interested persons contribute beyond the minimum funding level, additional awards are made possible.

A minimum of $25,000 can establish an endowment fund at NMU.

Through an endowment, awards and assistance are made from earnings only, and the initial gift is preserved as principal in perpetuity.

Donors have the opportunity to name an endowment they establish. Many choose to name them after themselves; in honor or memory of a relative, friend or loved one; after the name of a respected faculty member; or after the name of a corporation, foundation or other organization.

What can an endowment be used for?

The goals could be support for NMU's academic and research excellence, recognition for a beloved professor or friend, or an expression of personal interest in a particular discipline. Whatever the endowment's purpose, this form of gift establishes a legacy for your beliefs, interests and values.

NMU uses endowment funds in two basic ways:

Restricted funds are allocated for a specific need and made available for a certain period of time.

Unrestricted funds provide annual income that NMU can use toward areas of greatest need and opportunity, providing a source of dependable income in support of current programs as will as new initiatives.

What are the types of endowment giving?

Endowed program funds provide income for the development of academic programs in particular schools, departments or fields of study.

Endowed chairs allow NMU to recruit outstanding, world-class faculty, giving them the opportunity to conduct research and teach without concerns about funding.

Endowed research funds provide income to support the pursuit of new knowledge in a particular discipline.

Endowed scholarships and fellowships are crucial to recruiting the best and brightest undergraduate and graduate students to NMU. Donors receive information about each student who is awarded their scholarship or fellowship. NMU also has an annual campus gathering that includes donors, endowed scholarship recipients and their parents.