Endowments create financial stability, allowing Western Carolina to be less dependent on unpredictable sources of revenue, such as state appropriations. Endowments allow for a rich variety of activities, including scholarships and fellowships for talented students; support for distinguished and dedicated faculty members through professorships, or chairs; and support for research and other programs.
An endowment is created through the establishment of a permanent fund that is invested and managed. A portion of annual investment growth and income generated is used to carry out the donor’s designated purpose. Endowment yield in excess of the annual amount spent is added back into the fund so that it continues to grow and maintain its purchasing power for future generations.
Outright gifts and planned gifts such as charitable trusts and bequests are popular ways to fund the initial endowment or add to it in later years. Donors may fund endowments with a single gift or multiple gifts spread over time.