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Endowments and Investments
A general definition of a foundation is “a basis on which a thing stands or is supported.” In essence, the SIUE Foundation, then, helps support SIUE through additional resources that have been given to, or raised on behalf of, SIUE.
The SIUE Foundation is the unit that coordinates all fundraising efforts at SIUE as well as managing and investing the monies raised through these efforts. Incorporated in 1977, the SIUE Foundation is recognized by the Internal Revenue Service as a 501(c)(3) nonprofit organization. All gifts to SIUE are accepted through the SIUE Foundation, and these gifts may be considered tax-deductible to the extent allowable by law.
The Foundation coordinates fundraising activities through a style of fundraising that is decentralized with centralized coordination, with directors of development serving each of the SIUE schools and college, and some major units.
The SIUE Foundation has a volunteer board of directors that includes University, community and business leaders as well as SIUE alumni who have experience in several fields, including banking, finance, education, real estate and others. The Foundation Board sets policy, reviews investments, and establishes fundraising priorities. The Board also consults with the SIUE Chancellor. The day-to-day operations are handled by professional staff members.
The SIUE Foundation is located on the SIUE campus at:
30 North Circle Drive (Birger Hall)
Hours of operation are 8 a.m. to 5 p.m., Monday through Friday, except for University holidays and closures.
American Express (by mail, phone or online)
Discover (by mail, phone or online)
MasterCard (by mail, phone or online)
VISA (by mail, phone or online)
Rich Hampton, CFA, email@example.com (618) 650‑2345
Jeffrey Brown CFP®, firstname.lastname@example.org (618) 650‑3331 or (618) 650‑2345
Jeffrey Brown CFP®, email@example.com (618) 650‑3331 or (618) 650‑2345
Pat Mesnard, firstname.lastname@example.org (618) 650‑2345
Pat Mesnard, email@example.com (618) 650‑2973
Cash Contributions: Cash Contributions are considered to be those made by cash, check or credit card. The use of these gifts may be either restricted or unrestricted. These gifts may be the part of an outright (current) gift or a planned gift.
Non-Cash Contributions: Non-Cash Contributions include such items as securities, real property, and/or personal property. These gifts may be restricted or unrestricted. In addition, these gifts may be the part of an outright (current) gift or a planned gift. Non-cash contributions are a bit more complicated, often requiring more documentation to meet the guidelines of the Internal Revenue Service. Because non-cash contributions require additional paperwork and review, we encourage donors to contact the SIUE Foundation staff or the appropriate Director of Development when considering making a non-cash gift.
Personal Property: Personal Property gifts may include items such as artwork, artifacts, jewelry, books, furniture, musical instruments, machinery and equipment.
Real Estate: Real estate gifts may include land, personal residences, farms, vacation property, business buildings and income producing rental properties. The acceptance of real estate is governed by the SIUE Foundation Real Estate Gift Acceptance Policies and Procedures which clearly outlines the steps necessary to follow when donating real estate. Because of the varied nature of real estate, this type of gift requires more planning and research than other gifts.
Securities: Appreciated securities that have been held for at least one year can be a valuable resource for making a current or planned gift. Such a gift may allow the donor to avoid capital gains taxes while providing needed resources to a particular academic unit, scholarship or other program. Securities may be given as an outright gift or used to create a planned gift. Securities may be delivered by hand, through registered mail, or by electronic transfer. The gift value for a gift of stock will be calculated as the average price of the stock on the day the gift is made. The amount of the gift for a mutual fund will be the closing price on the day of the gift.
Outright Gifts: Outright gifts may be in the form of cash, securities, real estate, insurance or personal property. These gifts may be restricted or unrestricted. An outright gift may be considered tax-deductible for the donor, while providing immediate resources for use by SIUE.
Planned Gifts: Planned Gifts come in many forms including bequests, life income gifts, life insurance, and other options. These gifts may be created by gifts of cash, securities, real estate or other gifts. Planned gifts may be restricted or unrestricted and may provide benefits to both the donor, SIUE and the SIUE Foundation.
Bequests: Bequests made in a will are probably the most familiar type of planned gift. A bequest is usually revocable. At the time the bequest is realized, it may be used to create an immediate gift to the SIUE Foundation or a deferred gift through a life income gift for family or friends. While the SIUE Foundation does not provide legal or tax counsel, the Foundation will provide assistance to lawyers and tax advisors as they work with their clients.
Restricted Contributions: Restricted contributions may be given to support specific Schools, the College, departments, programs, scholarships, grants, awards, or endowment accounts at the SIUE Foundation. Restricted contributions may be given to new or existing accounts.
Unrestricted Contributions: Unrestricted contributions to the SIUE Foundation Advancement Fund are applied to the greatest needs and opportunities at SIUE as determined by the SIUE Foundation’s Board of Directors.
An endowment at the SIUE Foundation preserves the principal while providing income for a program account as specified by the donor. An endowment may be established at any level above the minimum endowment level and may support any SIUE school, unit, scholarship, or other area.
The SIUE Foundation’s Investment Policy sets the percentage of earnings from the endowment accounts that may be distributed as income to the program accounts. This distribution is made at least once a year.
An endowment may be created for a minimum of $25,000. Endowments may also be created to reach the minimum endowment level over a period of up to five years. Endowments may also be created at more than the minimum level.
An endowment to support a scholarship may be created at the minimum endowment level of $25,000, but this will only provide partial scholarship support. Currently, it takes an endowment of approximately $200,000 to provide full, in-state tuition and fees for an SIUE student for one year to provide significant scholarship support.
Endowments preserve the principal of the gift while providing income (earnings) for a program account specified by the donor(s). The annual earnings from the endowments are distributed in accordance with the endowment account’s classification. The distribution formulas may be changed at the direction of the SIUE Foundation Finance and Investment Committee. Currently, the spendable earnings allocation is set at 4.25%.
The Foundation utilizes the consulting services of Mercer Hammond Consulting for the Endowment investments. With recommendations and assistance from Mercer Hammond Consulting, Endowment investments are managed by a diverse group of approximately ten or more investment managers. Non-endowed investments are managed by TheBANK of Edwardsville Financial Management Group in coordination with cash flow analysis provided by the Executive Director of Financial Affairs and Information Systems. Charitable gift annuities are also managed by TheBank of Edwardsville Financial Management Group, which is under contract as the Foundation’s Planned Giving Administrator.
Overall, the SIUE Foundation follows an investment policy that is conservative, prudent and fiscally sound. The Board’s Investment Committee works to balance the need for current funds with the need to preserve the “buying power” of the Foundation’s endowments. The Foundation’s holdings are invested according to category. The endowment pool is invested in both equities and fixed instruments. The non-endowment pool, because of the necessity to have ready access to these funds, is invested primarily in short-term, fixed instruments with a modest allocation to equities.
An annual investment management fee of 1.25% of the market values of the endowment pool which includes the investment management fees charged by the investment managers. The remainder of the management fee is used to support the general charitable purposes of the Foundation and for purposes of defraying its expenses. Investment income from the current restricted accounts is retained by the Foundation to support administrative functions and associated costs. Current restricted accounts do not include endowment or annuity funds.
There are numerous scholarships that have been created by donors to benefit SIUE’s students. These scholarships are awarded through the SIUE Financial Aid Office or through the individual schools, college or departments, depending on how the scholarship was established. Scholarship criteria and/or applications are at:
A donor may designate specific criteria to establish a scholarship. The criteria may include such variables as major field of study, academic standing, community service, merit, financial need, etc. The donor will also need to decide whether the scholarship will be endowed, which will allow the scholarship to be awarded in perpetuity, or non-endowed, which will allow the scholarship to be awarded until the scholarship fund is exhausted.
When establishing the criteria for scholarships and grants, the following questions should be considered:
To address the potential situation where a scholarship may no longer be awarded as specified, the stipulation (the agreement that defines how the scholarship will be awarded) includes a statement giving the SIUE Foundation’s Board of Directors the ability to adapt or change the stipulation as necessary in order that an award may be made. Examples of such situations would include, but are not limited to: a program being dropped from the curriculum, a change in the tuition and fee structures, or a restrictive limit on the amount that may be awarded when additional funds are actually available to be awarded.
The SIUE Foundation supports the Meridian Scholarship Program through endowed scholarships. These programs demonstrate SIUE’s commitment to excellence in undergraduate education. Chosen for their academic records and their special talents and abilities, the undergraduate students in these programs exemplify the potential of SIUE’s student body. Through Meridian Scholarship Endowments, these programs offer opportunities for concerned individuals, organizations, and corporations to support SIUE’s commitment to excellence in undergraduate education.