How to Establish a Fund

Foundation staff can assist in writing a detailed fund description specifying how the fund will be used and administered or, if you prefer, the fund may be left unrestricted with the President of the University or the Foundation Board of Directors determining how the funds should be used to benefit the University of Maine. Click here for a sample fund description (PDF 9KB).

Funds may be endowed or quasi-endowed. Permanent endowments specify the principal is to be invested and only the income as prescribed by the Foundation Board of Directors (approximately 5%) may be used. A quasi-endowment is managed like a permanent endowment except that the entire fund may be expended in accordance with donor stipulations.

Once established, funds are invested as part of the General Endowment Fund of the University of Maine Foundation. The General Endowment is a professionally managed $100 million pool of assets consisting of nearly 950 individual funds providing much needed support of the University of Maine. Click here for our latest investment performance report (PDF 99kb) and investment objectives and guidelines (PDF 55kb).

You may establish a fund during your lifetime or upon your death with one of our deferred giving plans. Many donors choose to establish a fund and contribute to it over their lifetime and provide an additional gift upon their death. A named fund can be established for as little as $20,000, but the Foundation will accept smaller amounts to which additional sums may be added over time. See the various funding options available for making current or deferred gifts.

• Example: Donor establishes an endowed scholarship fund in memory of his or her parents with a gift valued at $20,000. Let’s assume the average net investment return of the General Endowment Fund is 8% and the amount of income distributed to the University is 5%.
  
  

  	Earnings	Income Paid to University	Ending Balance
  			$20,000.00
  Year 1	$1,600.00	$0.00	$21,600.00
  Year 2	$1,728.00	$1,080.00	$22,248.00
  Year 3	$1,780.00	$1,112.00	$22,915.00
  Year 4	$1,833.00	$1,146.00	$23,603.00
  Year 5	$1,888.00	$1,180.00	$24,311.00
  Year 10	$2,189.00	$1,368.00	$28,183.00
  Year 25	$3,410.00	$2,131.00	$43,908.00
  Year 50	$7,141.00	$4,463.00	$91,934.00

In fifty years, your Fund established with an initial gift of $20,000 will have grown to nearly $91,934 while providing over $117,000 in scholarship support.

The University of Maine Foundation has professional giving officers ready to work with you and your advisors. We may be reached Monday-Friday between the hours of 8 am and 5 pm by calling 1-800-982-8503 or via email at umainefoundation@maine.edu.