The Office of Donor Relations within University Advancement is responsible for the preparation and distribution of an annual report on the university's endowments. Links to the 2008-2009 report, which details information on both the University and the Foundation endowments, and to the 2007-2008 reports are below.
As part of UNCW's cost-saving and sustainability efforts, University Advancement now publishes numerous reports electronically. If you would like to receive reports electronically in the future, please send your preferred e-address to the Donor Relations office at UNCWedr@uncw.edu.
2008-2009 Endowment Report (pdf)
2007-2008 Foundation Endowment Report (pdf)
2007-2008 University Endowment Report (pdf)
Frequently Asked Questions regarding the University's Endowments:
1. If I have made a pledge, what happens to my fund until I make all my pledge payments?
2. Will the university reinvest the payout to help my fund grow?
3. When will my endowed fund begin making distributions in support of my gift’s purpose?
4. How is the payout on my named fund used?
1. If I have made a pledge, what happens to my fund until I make all my pledge payments?
The university has established minimum endowment levels for various types of endowed funds. Until a donor agreement has been fully executed, gift payments to establish a named fund will be held in an appropriate general endowment account. Once the agreement has been signed by all parties, the gift(s) will be moved to a newly created endowment fund.
2. Will the university reinvest the payout to help my fund grow?
No; the payout is made annually to each named fund spendable account and the university uses those funds to support scholarships, professorships, programs, etc. specified in the donor agreement. Funds grow through market appreciation as described in the endowment report.
3. When will my endowed fund begin making distributions in support of my gift’s purpose?
The named endowment fund will receive its first payout during the first fall semester coming 12 months from the date of fulfilling the minimum endowment level, so long as such payout would not place the endowment “underwater”. Payouts are made from net appreciation and may not reduce the principal or corpus of the endowment without prior written donor consent. For example: You have pledged $25,000 to establish a named scholarship fund. You establish the fund in January of 2006 with a check for $10,000. In April 2006, you add a gift of $15,000, which brings the fund to the minimum level for named scholarships. The first student award will be made in the fall of 2007, (12 months from fulfilling the minimum is April 2007 [maturity]; first fall semester following maturity is fall 2007), provided the market value of the endowment exceeds the historical gift value.
4. How is the payout on my named fund used?
The income generated by endowments allows UNCW to offer scholarships to students, attract the best professors to teach, support programs, and foster research. Each fund’s spendable account is awarded based on the criteria approved by the donor in the donor agreement. The approved percentage rate is calculated and rounded to the nearest $50 and distributed to the appropriate recipient(s) as outlined in the donor agreement. On occasion, an award is not distributed due to unforeseen circumstances (a recipient becomes ineligible due to withdrawal from the university or other circumstances which prevent the student from accepting the funds). In cases where the award cannot be redistributed to a deserving recipient, the funds are held in the spendable account until the next award cycle for distribution.
Commonly Used Terms:
Historical Gift Value:
- The original amount of the gift, plus any additional gifts.
Book Value:
- The cost basis of the gift, plus adjustments for gains or losses, subsequent gifts and any transfers to or from the fund.
Market Value:
- The total book value plus investment earned income and realized and unrealized gains and losses, less distributions
"Underwater" Endowment:
- An endowed fund whose market value is less than its historic gift value.
Earned Income:
- Income that is earned from investments, such as dividends from stock and interest from money market and/or bonds.
Realized capital gains/losses :
- These are incurred when an asset is sold. A realized capital gain results from selling an asset at a price higher than the original purchase price. A realized capital loss results from selling an asset at a price lower than the original purchase price.
Unrealized capital gains/losses:
- The change in value of an investment after it is purchased but before it is sold.
Total Return:
- The percentage change in value over a period of time, taking into account net income and capital appreciation (depreciation). This would include interest and dividends, realized gains (losses), unrealized gain (losses) and investment management costs.
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