Each share represents a uniform portion of the University Endowment Fund and is used to calculate the earnings that will be distributed to each named fund. Once this figure is calculated, it is then multiplied by the number of shares in a particualr named fund to determine what dollar amount the fund will receive in spendable income for the coming year. If annual endowment earnings exceed annual income distribution, the excess is retained as endowment principal. This, in turn, enhances future income distributions for each individual endowment account which helps compensate for inflation. The College dean or chair of that department is responsible for making expenditures from the fund under the directions set forth in the endowment description.
Scholarships are probably the most frequently held in a support account.