- The minimum gift needed to establish an endowment is $25,000. Commitments at this level and above require a document called a “gift agreement” that is prepared by a college development officer and signed by the donor(s) and the president of the UT Foundation. Gift agreements are important to ensure the university spends the funds according to the donor’s philanthropic intent, and that the donor is recognized appropriately for his or her commitment.
- Endowments generate interest income that is the “revenue” the college or department spends according to the parameters established by the gift agreement. Currently, about 4.5 percent of an endowment is available for spending, based on the three-year average of the endowment’s market value.
- While endowments are critical for ensuring the long-term impact of philanthropic investment, donors may also chose to establish non-endowed funds for specific purposes on a short-term basis.
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