Establishing an Endowment
Alumni Leland and Billlie Jean Wilson with President Rumaldo Z. Juarez
What is an endowment?
An endowment to Texas A&M University-Kingsville is a gift that is intended to permanently support a University program chosen by the donor. The endowment fund remains intact in perpetuity, while its earnings support students, faculty, and/or programs, as designated by the donor.
How does Texas A&M University-Kingsville benefit from endowments?
Endowments allow the University to create and maintain excellence in academics beyond what can be accomplished with funding from the state. Endowments provide the funds for scholarships, fellowships, professorships, academic chairs, libraries, and programs that serve as crucial elements in student and faculty recruitment and retention.
How can you benefit from creating an endowment?
Perhaps the most rewarding aspect of establishing an endowment is that it allows you to directly accomplish your philanthropic goals while helping the University fund its initiatives. The reasons for creating a named endowment are varied: the satisfaction of supporting academic excellence; the gratification of furthering important research; the pleasure of honoring a spouse, family member, or colleague in a way that is meaningful to him or her; the comfort of memorializing a loved one with a living legacy. Additionally, creating an endowment may result in tax savings and other financial benefits that may enable you to give more than you might have thought possible.
Endowing your gift
How does one create an endowment?
The gift for endowment purposes may take any of several forms. It can be an outright gift of cash; appreciated properties such as securities, real estate, tangible and intangible personal property (art, books, copyrights, oil and gas interests, etc.) acceptable to the University. Endowments can also be created through a gift by will; a charitable trust or other life income plan; retirement plan assets; or an insurance policy.
Gifts may be given or pledged over a number of years. You can also add to your endowment, beyond the initial funding level, through lifetime gifts, bequests, and beneficiary designations from life insurance or retirement plans.
How are endowments managed?
When the gift or pledge is received, a Memorandum of Agreement will be executed between you and the University. The memorandum outlines the terms and conditions of your endowment gift. The University will then administer your fund in adherence to the terms of agreement. The University cannot change the memorandum without the expressed consent of the donor or the donor's designated representative.
Your endowment will be invested in the University's Pooled Endowment Fund. This fund is invested utilizing the expertise of a number of external fund managers and is administered and reviewed by the investment committee of The Board Of Trustees for the Texas A&M University-Kingsville Foundation.
The following are funding levels established by the University for various endowments. These may be modified from time to time to meet the rising costs of education and programs.
This page was last updated on: May 12, 2011