Endowment Funds: giving now to benefit future student need
An endowment fund is created when a donor specifies that a gift of $10,000 or more is to be invested, and only the income earned on that gift may be spent for a specific purpose. The gift amount is referred to as the principal or corpus, and is held in a fund that is managed by a certified investment advisor designed by The Friends of Chabot College Board of Directors.
The donor stipulates that the corpus must be held inviolate, and in perpetuity, and invested to generate income to be spent for a specific purpose. In some cases, donors will allow for the corpus of their endowment to be spent. To spend the principal of an endowment fund requires the authorization of the donor and approval by The Friends of Chabot College Board of Directors.
Endowment income is spent in accordance with the restrictions set forth by the donor at the time the endowment was established. As each income fund is guaranteed a specific allocation for the fiscal year that is credited to the fund on a monthly basis, expenses can be charged up to the income allocation threshold at any given point during the fiscal year. However, expenses cannot exceed the income allocation projection for the fiscal year. For more information or to begin the process of establishing an endowment fund with The Friends of Chabot College, call 510-723-6633 or email firstname.lastname@example.org.