Throughout Hampton’s history, gifts from generous alumni and non-alumni or “friends of Hampton” have been vital to this University becoming one of the world’s premier educational institutions. Hamptonians all over the globe have been dedicated to encouraging not only fellow alum, but others outside of the University to invest in our students, faculty, and facilities through development of endowments.
Below are questions to help in increasing your understanding about creating an endowment fund.
I manage endowment strategies for the University, and would be pleased to speak with you directly to answer any questions you may have as you consider this long-term investment strategy.
In closing, thank you for all that you do to support the students, faculty and programs of Hampton University. Please review the below as you consider creating a lasting legacy of excellence! Contact me directly via the following: Office: 757.727.5350; Cell: 757.408.0057; or Email: Felicia.Blow@hamptonu.edu.
Frequently Asked Questions
- What is an endowment fund? And why is it important?
An endowment fund is a permanent, self-sustaining source of funding. Endowment assets are invested for long-term growth. Each year, a portion of the value of the fund is paid out to support the fund’s purpose, and any earnings in excess of this distribution are used to build the fund’s market value. In this way, an endowment fund can grow and provide support for its designated purpose in perpetuity. And most importantly, when you establish an endowment fund, you create a permanent legacy of support, allowing the endowment to be distributed in perpetuity. This creates a long and lasting legacy for you.
- What types of areas benefit from an endowment?
Endowed funds support a variety programs across Hampton University, including: 1 )scholarships, 2) fellowships, 3) faculty chairmanships, professorships, teaching funds and faculty development funds; 4) research endowment funds for specific issues/areas, and 5) program support in the form of lectureships.
- What level of support is required to establish an endowment?
$25,000 is the initial level for establishment of an endowment. I am happy to share other opportunities.
- How can I create an endowment?
I can work directly with donors to establish a customized endowment agreement (using our standard MOA). This agreement between the donor and Hampton University permanently defines the purpose of the fund. The agreement also outlines Hampton’s standard procedures for managing endowment funds. The ultimate goal is to establish an endowment fund that will be meaningful to both the donor and the benefiting program.
- Whose name is on the endowment?
It can be whatever you choose. For example, a donor may name an endowment for himself/herself, a family member or friend, a favorite professor, or another individual.
- Do I need to sign an endowment agreement or meet a minimum gift level if I want to give to an existing endowment?
No. Donors can make gifts of any amount to an existing endowment fund without signing an endowment agreement. Also, many donors who have established endowment funds in the past continue making gifts to them over time, increasing the impact of their funds.
- How do I find out about my endowment after I have made my gift?
Once an endowment reaches the minimum funding level and starts generating spendable income, the Office of Development will begin sending the donor annual reports detailing the value and use of the endowment fund. Scholarship endowment donors also can learn about their scholarship recipients
- What advantages do endowed gifts provide donors?
As Hampton is a 501c3 organization, you get the obvious tax benefits. Also, the donor has the satisfaction of knowing that a permanent gift has been made to Hampton which, in perpetuity, will be used for a specific purpose of their choosing. Furthermore, the donor has the privilege of naming the gift to honor a family member, a friend, a special faculty member, or themselves.
- How are endowed scholarships awarded?
If an endowed scholarship is fully funded prior to August 1, it will be awarded beginning in the next fiscal year. For example, if an endowed scholarship is fully funded on October 1, 2015; this scholarship will be awarded in the 2016-2017 fiscal year, which begins in July annually. Distributions are made by the Office of Financial Aid & Scholarships according to the donor’s guidelines. If eligible recipients cannot be found, award income is reinvested back into the endowment and held over to be awarded in the following academic year.
- Can I establish an endowment through my estate?
Yes. The Office of Development staff would be pleased to discuss this option with you and get the guidelines for your desired endowment in place.
- How can I set up an endowment?
To discuss particulars for all of your endowment needs, contact: Felicia Blow, APR, Associate Vice President for Development & “Dream No Small Dreams II” Director of Campaign.