An endowment is an investment in the future and a gift that lives in perpetuity.  Donors create a legacy by specifying the name and purpose of an endowed fund.  Endowed funds can be used for scholarships, faculty research or professional development, program support or other University priorities.

The corpus of an endowed fund remains untouched.  The gift is invested with two goals:

1. Making the principal grow faster than inflation
2. Providing expendable income for the donor’s specified purpose

At UNC Charlotte a minimum of $25,000 is required to fund an endowment and the gift may be spread over five years.  Until the fund is fully endowed, no distributions will be made.  Typically, a donor will make an endowed gift payment along with an annual gift.  The annual gift helps make an impact immediately.

UNC Charlotte’s payout rate is currently 4.5%, meaning that of the interest earned 4.5% will be distributed to the donor specified program and the remaining earnings will be reinvested into the principal of the fund to help build the corpus.  An annual report is sent to all endowed fund donors explaining the funds earnings and distributions.