KU Endowment hits $1 billion milestone
Majority of funds restricted
KU Endowment recently reached a significant milestone at a time when another, unwanted milestone is being set. While KU endowment recently reported the market value of endowed funds reached the $1 billion level, the deferred maintenance problem at KU is climbing into the hundreds of millions of dollars.
Despite the large sums, the former cannot erase the latter. The majority of KU Endowment's funds are restricted, designated by a donor to be used for a certain purpose.
"Most of the donors will specify 'I want these funds to be in place for perpetuity for this cause,'" said Dale Seuferling, KU Endowment president.
The thousands of accounts help pay for everything from named professorships and scholarships, to lectures, performing arts, research equipment, teaching awards and art acquisitions to name just a few.
Roughly 4 percent of KU Endowment's funds are unrestricted, or are not designated to pay for a specific project or item. The chancellor and KU endowment's executive committee decide what those funds are used for. This year, $7.1 million have been made available for university support. For comparison, the deferred maintenance problem alone has been estimated at more than $200 million.
The $7.1 million is used to fund scholarships and academic and student support, real estate acquisition and construction projects, program support for administration, KU Alumni Association, Graduate School and International Programs, student recruiting and international visitors and faculty and staff development and support.
While there are not many funds available for such a purpose, it is possible for donors to give funds for such needs.
A common misconception is that in order to reach $1 billion, the assets of KU Endowment are seldom used. During fiscal year 2006, KU Endowment disbursed $99 million in support to KU, and most of it came from the return on the investment of endowed funds and other long-term funds. Additional support came from gifts designated by donors for immediate expenditure.
"Reaching that milestone ($1 billion) represents 100-plus years of giving with the intent of building the university for years to come," Seuferling said.
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