A Gift that Keeps on Giving
Endowed gifts are permanent gifts that secure New Mexico State University's future. These funds are invested in the NMSU Foundation's pooled investment fund and a portion of the earnings is distributed annually to support the scholarship, professorship, academic chair, or university program chosen by the donor.
Speaking simply, these type of gifts ensure that your legacy lives on far into the future. Whatever you support with an endowed gift across the NMSU system will forever receive your support - even after your lifetime. There are different ways to create an endowed gift that supports students and faculty.
Types of Endowments
Endowed chairs enhance the prestige of an institution. A minimum investment of $1 million is needed to endow a chair. With their highly focused areas of study, endowed chairs attract experts to campus as well as graduate students eager to work with these faculty members. A chair is the most prestigious appointment within the University.
In addition to supplementing a professor’s university salary, money generated from the chair’s endowment supplements the salaries of other faculty members in the research group. It can also support a technician or researcher for the group as well as administrative and operational support. A team like this is positioned to succeed and promote a field of study or interest.
Endowed professorships require a minimum investment of $250,000. A named professorship can provide the holder with more resources to advocate for his or her special program. It speaks to the academic reputation of the faculty member who holds a named professorship. Funds to support professorships will help NMSU retain talented faculty who are in demand by other universities and the private sector.
Endowed scholarships are a unique way to not only create a legacy of your own at NMSU but also provide perpetual funding for students earning a degree. A minimum investment of $25,000 can begin the process of establishing a named scholarship endowment.
How do I create an endowment?
It is simple. Contact the NMSU Foundation at 575-646-1613 or 800-342-6678, and we will craft a gift agreement that will govern your gift according to your wishes. You may designate your endowment for a specific purpose as long as it is consistent with university policy, state, and federal laws. Once the gift is accepted, the conditions are followed in perpetuity. Endowments may be funded with cash, securities, or deferred gifts through a one-time gift or installment payments for up to five years.
How is the spending allocation determined?
The amount of funds available for distribution from the fund to the beneficiary colleges, departments, units, and programs during each fiscal year shall be determined from prior year’s market performance. The allocation is a weighted allocation of two numbers — the target spending based on the quarterly endowment market values and the previous year’s spending adjusted for inflation.
Endowed gifts managed by the NMSU Foundation are pooled for investment much like a mutual fund investment. The distribution payment is established on an annual basis by the Board of Directors of the NMSU Foundation. The Board of Directors may change the management fee policy and/or the spending policy from time to time to protect the intergenerational equity of the endowment.
How does the market affect my endowment account?
Earnings added to the fund fluctuate with the markets. Although our portfolio is well diversified, some investments might occasionally lose value. The spread of the investment allocations helps compensate for losses by a particular style of investment and takes advantage of earnings realized when an investment style is in favor with the market.
Will I receive an endowment report?
Yes! Annual endowment reports provide timely, accurate fiscal status and growth of each fund. Reports are mailed to donors and donor representatives of each fund. Recipient names are included for the endowed scholarship funds.