FOUNDATIONS
What is endowment?
A primer on building the endowment, a key component to the College's future success.
Building the endowment.
The phrase gets thrown around often in academic circles, but what does it really mean, and how does it work?
Here's a primer from the NC State Engineering Foundation, which works with donors to secure private financial support for the College. The bottom line: Endowment gifts are the most important long-term investments a donor can make in the College.
What is endowment?
In higher education, the word “endowment” has a couple of meanings. One definition refers to the big picture — the total value of an institution’s investments. The word is also used to describe the individual gifts that make up that larger endowment. These gifts support professorships, scholarships, graduate fellowships and programmatic activities in the College.
How are endowment funds distributed?
After a supporter makes an endowment gift, the principal is deposited in an investment account, and only the endowment’s annual income is used for the donor’s chosen purpose. So, if a donor makes a $500,000 endowed professorship gift, a set percentage of the interest building off that amount goes to the chosen faculty member each year. Endowments last forever and touch many lives as the principal grows over time.
Why is supporting the endowment so important?
The College’s $76.3 million endowment ranks behind many of its peers. Schools with larger endowments have a greater chance of luring top faculty and students with endowed professorship and scholarship offers. These talented people can start distinctive research efforts that separate NC State from the competition.
Are some endowment gifts more important than others?
All endowment gifts are important, but the Foundation places special emphasis on endowed professorships, the most important vehicle for recruiting and retaining talented faculty. These endowments create funds used for salary support and research activities, including graduate assistants, equipment and course development. A state matching program helps donors get more for their money.
I want to make an endowment gift, but I can’t do it now. What are my options?
You may want to consider a planned gift. Donations through wills or trusts support the College and can create lifetime income for the donor or a loved one. Some planned gifts make the supporter eligible for estate tax deductions. When donors let the Foundation know about these commitments, it gives staff the chance to answer questions, recognize the donors’ generosity, and tell their story to inspire others to make similar commitments.
How are endowment donors recognized?
Endowment donors are recognized in a number of ways,
including at an endowment dinner held each spring (see photos at left). The dinner brings together supporters with the student or professor receiving the endowment funds, providing a wonderful opportunity for donors to learn about the people and projects they are sponsoring. 
For more information, please contact Martin Baucom at the NC State Engineering Foundation at (919) 513-3950 or visit www.engr.ncsu.edu/foundation.