The University of Washington’s Consolidated Endowment Fund (CEF), provides a revenue stream to support the University’s academic and other programs and needs. Endowed funds are invested for the long term. Distributions from the endowment are used to sustain the University’s academic excellence by supporting outstanding faculty, innovative programs and student scholarships. Below are answers to some frequently asked questions about the University of Washington’s endowed funds.
What is an endowment?
An endowment is a permanent fund established to support a specific purpose. Support is paid in an orderly and predictable basis based on the spending policy approved by the Board or Regents.
What is the Consolidated Endowment Fund?
The Consolidated Endowment Fund (CEF) is the investment pool of the University’s endowed gifts. The CEF operates similar to a mutual fund in that each individual endowment buys units in the fund.
What level of support does the CEF provide to campus?
Distributions from the CEF make up about 5% of the total University’s’ annual revenues, not including patient fees and grants and contracts.
What are the objectives of an endowment spending policy?
The purpose of a spending policy is to provide a disciplined and reasoned approach to moving money from the endowment on a predictable and consistent basis. This policy helps preserve intergenerational equity, the idea that future generations of students and faculty receive the same level of benefits for the endowment as today.
What is the current spending policy?
Distributions to programs are 4% of a five-year rolling average. Please see CEF Spending Policy for more information.
Why doesn’t the University use the endowment to replace the millions of dollars in state funds that have been lost during the recent budget difficulties?
The endowment provides a margin of excellence for the University, but it does not replace the unrestricted funds coming from state appropriations and student tuition dollars. The use of endowment funds usually is restricted by the donor—such funds can only be used for the specific purpose for which the endowment was established.
What has the CEF’s investment performance been?
For a detailed look at the CEF’s investment performance, please click here to view recent Investment Performance Reports. For additional information about the CEF, please see the UW Endowment Report .
Whom do I contact if I am interested in establishing an endowment?
Information about establishing an endowment can be found on the web site for University Advancement.