Endowment Spend Policy

Summary of Endowment Policies & Guidelines for FY 26-27

Endowment Management - The WVU Foundation is a private, not-for-profit, 501(c) (3) corporation that raises and manages donations for the benefit of WVU. The Board of Directors oversees the endowment and establishes policies to ensure the efficient management of endowed funds.  Endowments can be designated by the donor to impact a specific program or to meet the most critical needs of the University and its affiliates.

Investment Policy - Endowments are invested by pooling the funds together like a mutual fund. The investment pool is managed by professional investment managers, is broadly diversified across asset classes/investment managers with oversight provided from the Board Investment Committee. WVUF charges an annual investment/management fee of 1.35% on endowment funds to defray the cost of WVUF operations.

Endowment Spend Policy - Endowment funds are invested so that a gift today will fund a donor’s objective in perpetuity. The objective is to provide an annual payout that keeps pace with inflation while maintaining the purchasing power of the original gift over time. Annual payout will be determined as follows:

1. New endowments received during the year are included in the spend calculation and made available for use by the University the following July 1st which provides the opportunity for earnings growth during the first year. Donors may also provide cash spend gifts which are made available for immediate use by the University.
2. Spend Rate(s) are as follows:
1. Established endowments receive a payout of 3.75% of the prior twelve quarter market value average of the fund.
2. To preserve and grow endowment principal, funds with a market value below original gift value up to -10% will receive a reduced payout of 2.25%
3. Funds with a market value below original gift value > 10% receive no spend.
3. Endowments funded with pledge payments will be invested and upon reaching the minimum endowment amount become eligible for Spend payout the following year.

Reporting and Monitoring

1. Endowment Spend will be declared in August for the next fiscal year using the prior twelve quarter market values as of June 30, 20xx.
2. Spend projections are provided for years II, III, IV to assist with financial aid and planning.
3. Endowment information is provided to WVU Budget Officers on a regular basis.
4. Accumulations of cash can be reinvested and/or spend deferred to address the needs of the University, College and/or Unit.

This Policy is reviewed annually by the Finance & Administration Committee and payout is subject to approval by the Board of Directors.