Types of Gifts
An endowment is a fund comprised of philanthropic gifts and other assets set aside and invested to provide permanent support for the University’s mission. The capital of the endowment remains intact, and returns are used to support a number of activities and programs. AUC manages more than 100 endowed funds to ensure that donor requirements are met and that the assets of these funds are invested to grow over time. The AUC endowment has historically earned comparable returns to other university endowments. A minimum of $50,000 is required to establish a new endowed fund at AUC.
AUC’s endowment is constructed as a diversified portfolio and invested across different asset classes such as stocks, bonds and alternatives. This diversified approach is designed to maximize return based on a prudent level of risk. AUC’s investment office selects and monitors professional, third-party investors who specialize in managing institutional assets. AUC’s endowment fund is governed by an investment committee of the Board of Trustees that reports regularly to the board. The trustees who serve on this committee are well-qualified to act as fiduciaries of these funds.
AUC’s annual spending policy allows the University to spend up to 5 percent of the rolling three-year average market value of endowment funds, calculated as of December 31 of each year. The spending policy was developed to preserve the purchasing power of the endowment on an inflation-adjusted basis.
A current fund will provide immediate support for a research activity, an award or to support scholarships and fellowships. Once the money is dispensed, the fund will become inactive until an additional gift is made. A current scholarship and fellowship will support an undergraduate student for up to five years of study and a graduate student for two and a half years of study respectively. Once the students graduate, AUC will not be able to award another scholar or fellow until a new fund is established.
The AUC Annual Fund supports every pillar of AUC. It is a practical tool that helps the University address its most pressing, ongoing needs. They include: scholarships to deserving students, funds to recruit and retain the world’s finest educators and researchers, and maintaining the exceptionally high standards of our facilities.
The Senior Class Gift is a student-led fundraising campaign to generate donations for the AUC Annual Fund. The aim of the campaign is to unite all seniors under one goal, which is to help create the future generation of leaders. This symbolic gift marks the beginning of a new tradition: staying connected to AUC through giving as alumni.