Endowed funds established through the PSU Foundation provide support for academic, research, and athletic programs, enabling Portland State University to sustain its character as a leading urban university. Endowed funds may be established for a variety of purposes, which fulfill donor interests and advance priority objectives of the University.

The minimum amount recommended to establish and name an endowment is $20,000, although larger amounts are encouraged. Exceptions to this requirement may be considered as appropriate. Donations to an endowed account must remain unspent in perpetuity, unless designated by the donor for current spending purposes.

• Each individual endowed fund owns shares within the PSU Foundation's endowment fund. The Foundation will make annual distributions to the endowment's payout fund utilizing the weighted average spending method:
  70% Weighted to Inflation-Adjusted Spending (CPI plus 1.0%)
  30% Weighted to 4.0% of the Endowment Market Value
• Payments will not be made to the endowment's payout fund if the market value of the endowment is below corpus. Then earnings must be reinvested until the market value returns to historic value. This restriction may be released by the donor.
• 1.5% endowment fee is deducted annually.
• A one-time administrative fee of 5% is assessed on all new restricted gifts.
• Contributions can be designated for current spending purposes. All donations will be deposited into the non-expendable portion of the endowment unless the donor specifies that the donation is for current spending purposes.

Options for Continued Distribution in a Challenging Investment Climate

The donor can authorize the Foundation to de-endow a portion of the corpus for current spending purposes (e.g. $100,000 corpus could be reduced to $90,000 and the $10,000 would then be available for current spending purposes). This authorization must be in writing and signed by the donor.

The donor can authorize the Foundation to distribute a fixed percentage equal to the PSU Foundation's current payout rate without regard to whether the fair market value of the fund assets is less than the historic dollar value. In a period of down markets, this means that the fixed percentage payout will come out of the corpus, thus reducing the corpus in addition to any investment losses. In a period of up markets there would be no adverse affect. This authorization must be in writing and signed by the donor.

If a donor has an existing pledge, or is making a new pledge, the donor can authorize the Foundation to utilize the funds for current spending purposes. This authorization must be in writing and signed by the donor.

Endowment Agreement This version of the form is for informational purposes only. All endowment agreements must originate with the Foundation. Please contact Becky Hein, heinbe@pdx.edu or x5-5881 for assistance.

Endowment Agreement with Scholarship Addendum This version of the form is for informational purposes only. All endowment agreements must originate with the Foundation. Please contact Becky Hein, heinbe@pdx.edu or x5-5881 for assistance.