Creating an endowment through the Shippensburg University Foundation is an investment in the future of Shippensburg University’s students, faculty, and programs.
Many of our alumni and friends have not only provided annual funds year by year, but have also helped to build a permanent financial foundation through the Shippensburg University Foundation for the benefit of Shippensburg University.
Of all forms of private giving, endowments offer perhaps the most influential of investments in higher education by creating self-renewing, living legacies that span generations. An endowment is an investment in the lives of those to come, a promise without end, made by today’s donors to the future.
HOW AN ENDOWMENT FUND WORKS
In an endowment fund, the principal is invested in perpetuity and only a portion of the investment’s earnings is utilized for the benefit of Shippensburg University each year. The rest of the earnings are channeled back into the fund, so that the endowment grows over time as a hedge against inflation.
In this way, the endowment becomes a long-term source of funding for whatever a donor wishes to achieve with his or her philanthropy. Endowments may be either restricted or unrestricted, depending on whether there is a designation for the use of the income from the endowment.
The Shippensburg University Foundation’s overall endowment is made up of many individual endowed funds. The SU Foundation manages these endowments to produce earnings that support students, faculty, and programs as designated by the donor. (See frequently asked questions for a full explanation of how the Shippensburg University Foundation manages the endowment.)
A strong endowment increases the SU Foundation’s ability to more effectively control many of its revenue streams, acting as a potential buffer for political or economic fluctuations. Because an endowed fund continues in perpetuity, an endowed gift has both an immediate and a continuing impact on the University today and in the future.