The growth of the endowment over the past several years has been significant-stimulated by Campaign Illinois gift subscriptions. Most of the endowed funds are held in pooled investment accounts under the supervision of the Investment Policy Committee of the Foundation Board of Directors or the Finance and Audit Committee of the University Board of Trustees. The other funds are invested in securities and real estate received as gifts which are held for specified periods of time as required by the terms of a bequest or other gift provision. Effective with fiscal year 1987, an annual management fee to support fundraising operations was authorized on all invested accounts including the endowment pool. The endowment pool is operated under the total return concept.
Expenditure is limited to a percentage of the three-year moving average of the market value.
If earned income is not sufficient to cover the expenditures, the amounts will be taken from accumulated gains. If income exceeds the amount expended, the excess remains in the pool and increases market value of each account. 1997 Testamentary commitments are deferred gifts made through bequests, life insurance, retirement accounts and life income plans such as charitable remainder trusts and charitable gift annuities to note but a few planned giving methods.