Endowments

About the Endowment

Dear Friends,

As a member of the Board of Trustees and Chair of the Investment Committee, I am pleased to share information about the University’s endowment in the 2018-19 fiscal year. Our assets continue to be managed by Investure, LLC, a recognized leader in the endowment and foundation investment management industry. They are a full-service, outsourced investment firm whose focus is on meeting the needs of non-profits and a select group of prestigious colleges and foundations. The University of Denver portfolio is a global, multi-asset class portfolio that is heavily weighted to equities. It is constructed to (1) take advantage of the endowment’s perpetual time horizon with a focus on long-term (10+ years) outperformance over passive indices, and (2) protect against large downturns in the global equity markets. During the fiscal year ending June 30, 2019, the University’s overall endowment experienced a 4.75% return. While we are pleased with the fiscal year return in a challenging market environment, Investure is constructing our portfolio to responsibly achieve our desired long-term asset allocation targets that should ultimately drive sustained outperformance. Thank you again for your support and investment in the University of Denver.

Sincerely,

K. C. Gallagher, MBA '03

Chair, Investment Committee

Board of Trustees

Endowment FAQ

• What is an endowment?

  An endowed fund is a gift held in perpetuity for the purpose of institutional support and growth. The endowment is the aggregated collection of all endowed funds gifted to the University by generous donors and foundations, of which many are dedicated to specific purposes defined by the donor. The gift principal (initial dollar amount) is invested, while a percentage is released for direct spending on the selected endeavor. Because they are established to remain in effect over the long term, endowed funds can change countless lives over the years. The impact of an endowed gift will continue into future generations of DU students, shaping minds and careers.

• How are the funds managed?

  Each endowed fund is administered according to the provisions of a written agreement approved by the donor and the University at the time the fund is established. This agreement sets forth the name and purpose of the endowment, and is developed through discussions with the donor in conjunction with Advancement.

  Endowed funds are pooled for investment to contain costs and maximize returns. Separate accounting is maintained for each endowed fund to track growth, expenditures and additional contributions — thereby preserving the identity and purpose of each fund. The investment pool is overseen by the University’s Investment Committee, which employed the services of Investure, LLC, a leading investment firm, to actively manage the University's Endowment Investments. Earnings in excess of the amount expended from each fund (a maximum of 4.5%) are retained in the fund to provide the basis for continued growth.

• How can I establish an endowed fund?

  In considering the creation of an endowed fund, you should ask yourself what amount of annual support you would like the fund to provide each year for its designated purpose. Multiply that figure by twenty, and you arrive at an estimate of the endowed principal that will be needed to establish the fund at the level you envision. For example, if you wish to establish a scholarship fund that will provide an award of $5,000 each year, you will need to donate approximately $100,000 in endowed principal ($5,000 x 20 = $100,000). Certain minimum commitments are required to establish a new endowed fund; a listing of these may be obtained from Advancement.

  Endowed funds can be established all at once or over a period of up to five years. They may be established with donations of cash or other property such as appreciated securities or real estate. They may be established through outright gifts, or through a deferred gift plan such as a bequest from your estate, a retirement plan designation or a charitable remainder trust. After creating a fund, many donors choose to augment their original gift with annual contributions during their lifetime, and often include a bequest to the fund in their estate plans. Advancement is available to help you decide what makes the most sense for you, and how you can maximize the impact of your gift.

  For more information, contact us at donorrelations@du.edu or 303-871-4591

• How can I find out the status of my endowed fund?

  Advancement provides donors of endowed funds with an annual report each fall that reflects the financial status and activities of the fund for the previous fiscal year (July 1-June 30).

  For more information, contact us at donorrelations@du.edu or 303-871-4591