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The Gift That Keeps on Giving...What is an Endowment?

The Texas A&M University System boasts one of the largest endowments in the U.S., valued at over $19 billion to $20 billion, providing perpetual funding for scholarships, faculty chairs, and programs. Managed by the Texas A&M Foundation and UTIMCO, these funds are invested in a diverse Long-Term Investment Pool (LTIP) to ensure long-term growth and steady annual payouts. 
Key Aspects of the Texas A&M Endowment:
    • Purpose & Function: Endowments are self-sustaining funds where the principal is invested, and a portion of the returns is distributed annually to support university operations, primarily student scholarships and faculty support.
    • Management & Investment: The Texas A&M Foundation manages these funds, focusing on a "long-term investment pool" that leverages diverse asset classes to maximize returns and withstand various market conditions.
  • Types of Endowments:
    • Endowed Scholarships: Typically require a minimum gift of $25,000, which can be funded over five years.
    • Faculty Chairs/Professorships: Generally require minimums of $1,000,000 or more depending on the college.
    • Fellowships: Often start at $150,000 to support graduate research.
  • Payout Policy: The foundation currently distributes 4% of the LTIP's average unit value to the university, with an additional 1.25% covering operational costs.
  • Reporting: The Office of Finance provides disclosures, including endowment account reporting, legislative reports, and compliance monitoring. 

 




 

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