What is an endowment?

An endowment is a permanent fund held by the UMKC Law Foundation. When establishing an endowment, the donor may stipulate what the endowment will be used for at the school of law. When the donor and the administration of the law school agree to the terms of the endowment, an endowment agreement is prepared and it is signed by the donor and the President of the UMKC School of Law Foundation.

How is an endowment is structured?

An endowment is a permanent fund that is held by the UMKC Foundation, a 501(c)(3) charitable organization that was founded in 1959. The market value endowment as of June 30, 2013 is $8.4 million. The Foundation Board of Trustees is responsible for the overall administration of the endowed funds including investment of the funds and determining the annual rate of disbursement for the fund’s intended purpose.

For the past 20 years, the annual rate of return has averaged just under 8%. The current spending policy is 4% is disbursed for the fund’s purpose (scholarships, program support, etc.), 1% allocation to support investment management and the balance is returned to the principal amount of the endowment.

Endowment illustration, based on $100,000 endowment and 8% return

Income

Endowment market value

$ 100,000

Rate of return (8%)*   

8,000

Total     

$ 108,000

Amount available for disbursement**

$8,000

Disbursements ***

Purpose of fund (4%)    

$  4,000

Investment management

    1,000

Return to principal of fund (3%)

3,000

Total amount disbursed

$   8,000

New value of endowment after one year                                            $  103,000

*average annual rate of return over past 20 years
**disbursements start after one year
***UMKC Law Foundation Board of Trustees annually reviews and sets disbursement allocations

For more information about endowments, please contact Kirk Baughan, Law Foundation Director of Development.

Photo of Kirk Baughan

Kirk Baughan

Director of Development & Major Gifts Alumni & Development
Work Phone: 816-235-6328
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