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Endowment Payout Rates

The primary purpose of the endowment is to provide a predictable and permanent source of funding for the University’s mission.

In order to calculate an endowment payout amount, either multiply the payout rate per unit by the number of units in the endowment, or increase the prior year endowment spending budget by the parameter listed in the table below for the appropriate fiscal year. 

Fiscal Year
Payout Rate
Parameter Increase Over Prior Year
FY 2019 $10.44 2.86%
FY 2018 $10.15 1.40%
Endowment Spending Guideline Methodology

The endowment spending guideline calculates the amount of the endowment the University will spend each year to fund the University's mission. Starting with the average market value of the endowment for the previous 12 months, the spending guideline incorporates the following weighted factors to set an annual endowment payout rate:

The market component is calculated by multiplying the long-term target-spending rate of 4.35 percent by the endowment's average market value for the prior 12 months. This component carries a weight of 30 percent in the spending rate calculation.

The spending component includes an inflation adjustment over the prior year's endowment payout plus the annual projected growth of the budget. This change in the annual endowment payout carries a weight of 70 percent.

Payout Calculation for FY 2019

Market Component (30%)

12-Month Average Market Value $237.02
Target Spending Rate 4.35%
Weight for Market Component  30%
Total Market Component
$3.09

Spending Component (70%)

Prior Year Spending Rate (FY 2015) $10.15
Fiscal Year Increase in CPI 1.94%
Budget Growth 1.50%
Weight for Spending Component 70%
Total Spending Component
$7.35
Total Payout Rate per Unit (Market + Spending)
$10.44
Increase Over Prior Year 2.86%
Payout Calculation for FY 2018

Market Component (30%)

12-Month Average Market Value $226.62
Target Spending Rate 4.35%
Weight for Market Component  30%
Total Market Component
$2.96

Spending Component (70%)

Prior Year Spending Rate (FY 2015) $10.01
Fiscal Year Increase in CPI 1.06%
Budget Growth 101.50%
Weight for Spending Component 70%
Total Spending Component
$7.19
Total Payout Rate per Unit (Market + Spending)
$10.15
Increase Over Prior Year 1.40%
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