What is the William Woods University Endowment Fund?
Endowment funds are often used by nonprofits, such as William Woods University. They are funded by donations, which are tax-deductible for donors. These funds are restricted: they may only be used for a purpose specified by the donor with the exception of gifts to the general endowment. The William Woods University endowment provides financial resources for a specified purpose forever. The endowment helps to provide stability over time to nonprofits that possess them.
The principal (the donation) is never spent. The principal is invested according to university policy to provide interest income that is used for the purpose of the fund.
A donor may choose to start an endowed scholarship to honor a loved one in perpetuity. The minimum amount for an endowed scholarship at WWU is $10,000. A fund may be started with a lesser amount, but the donor must donate $10,000 total within five years for the fund to be endowed. Once the scholarship fund has reached endowed status, the principal is invested and the interest is used to award scholarships. An endowed program, professorship, or chair, for example, operates the same way. The principal is invested, and the interest helps pay for the program, professorship, or chair in perpetuity. These funds are often named to honor the donor or someone the donor designates.
Who should participate?
You should participate if you want to provide a long-term benefit to the university and its students, while honoring or memorializing someone.
Benefits and ways to participate in the Endowment Fund
- Your gift to the WWU Endowment Fund provides support year after year.
You (or others) can continue to add to an endowment fund, providing more principal that will earn more interest to achieve your giving goals.
- The principal of your initial gift is never spent. Only the income generated from the investment earnings is used to support the designated purpose of your gift.
- Endowment Fund contributions are listed in the annual Donor Honor Roll in The Woods magazine.
- Gifts to WWU, a 501(c)(3) nonprofit, are tax-deductible to the extent allowable by law.
For information regarding a giving to the WWU endowment fund,
contact Peggy McGrew at 573.592.1128 or Peggy.McGrew@WilliamWoods.edu.