Existing in perpetuity
An endowed fund exists in perpetuity for the benefit of Fredonia and the special use you specify. While your gift (the principal) remains invested, the income it earns is spent annually according to your wishes.
- Required size of gift: A $10,000 or more principal is required. Gifts can be made via cash, transfer of stock, a bequest, or a combination of these choices.
- Memorandum of Agreement: The donor and the Fredonia College Foundation sign a Memorandum of Agreement (MOA) that states the name and purpose of the endowment.
- Permanent and on-going: One year after a fund becomes fully endowed (reaches $10,000), the permanent and on-going awards process begins.
- Spending the endowment: Four and a half (4.5) percent of the endowment's value is spent annually. The Fredonia College Foundation's Board of Directors determines the spending rate annually.
- Growth through interest: Earnings beyond 4.5 percent are used to grow the endowment's market value to offset inflation. Unless otherwise restricted by the endowment gift instrument or Memorandum of Agreement, New York State law provides that the Fredonia College Foundation may expend so much of the endowment fund as it deems prudent after annually considering the factors governing appropriation decisions set forth in the New York Prudent Management of Institution Funds Act.
- Adding gifts to the endowment: Once an endowment is established, the principal can grow through the addition of new gifts. Anyone can give to an existing endowment. We encourage our donors to consider giving to funds already in existence. When they do, the endowment's creator(s) are notified.