Establishing a Fund

As donors to Missouri State University, we value your generosity and loyalty. Your gifts create a margin for excellence and sustain an environment where dreams come alive.

We strive to offer choices that allow you to establish the kind of fund that most closely matches your philanthropic desires. There are two ways to establish a fund.

Choice 1: Expendable funds

  • $5,000 minimum contribution or $1,000 per year for five years
  • You specify the purpose of the fund through a memorandum of understanding

Expendable funds are available immediately to the designated college or department. Expendable contributions are invested in the Expendable Pool.

Earnings are retained by the foundation to cover the expense of administering the accounts.

Choice 2: Permanently endowed funds

  • $25,000 minimum contribution
  • Principal never invaded; only earnings are distributed; distributions are made monthly
  • 4.5 percent of market value is distributed to purpose.
  • 1.2 percent of market value is distributed to the foundation for development and management expenses
  • You specify the purpose of the fund through a memorandum of understanding

The Endowment Pool operates much like a mutual fund; the endowed accounts purchase shares in the pool at the share value on their day of purchase. The share value fluctuates with the value of the investments made by the pool. The cost of operating the pool is subtracted from the total market value of the pool, spreading the cost equally to all participants.

Should the market value of a permanently endowed fund ever be less than the total amount contributed to the fund, the foundation will cease making additional distributions to purpose. This is referred to as an “underwater” condition. Distributions to cover operating costs and management fees are allowed. Normal distributions resume when the market value again exceeds the contributed value.