|Private support to UND remains steady|
In a year when a number of peer universities are receiving reduced endowment payouts from their affiliated foundations, the UND Foundation’s board of directors remains committed to the 4 percent payout that’s been in place for four years.
“Our goal is to balance intergenerational equity with current payments to the endowment target – students, faculty, programs, etc. The pendulum is constantly in motion so sometimes we pay out more than we make, sometimes less. Over time, we believe we will be in balance,” said Rick Burgum, head of the UND Foundation investment committee.
The spending rate is applied to the investment portfolio, using a four-quarter-average of values at Dec. 31. Fund constituents throughout campus will receive a report in February with the spending amount available for the 2010-11 fiscal year.
All fund constituents will also be receiving an invitation to attend an informational meeting in December to review and discuss endowments, spending and the mechanics. This is just one way the UND Foundation helps provide the resources that may ultimately benefit the great work that is done to move UND from great to exceptional.
In establishing the endowment spending policy there are a series of objectives:
• maintaining impact at UND
• maximizing spending for today
• protecting future purchasing power of the endowments.
The UND Foundation ended the fiscal year June 30, with losses due to the severe downturn, credit crisis and market circumstances. In setting the spending rate for fiscal year 2011 the investment committee of the UND Foundation considered the market value of the endowment compared to historical cost and all other factors provided by the North Dakota statute known as Uniform Prudent Management of Institutional Funds Act (UPMIFA).
-- Leanna Ihry, Media Relations Coordinator, UND Foundation, email@example.com, 777-0831