What is the payout rate on endowed funds, and how is it determined?
The current payout rate is approximately 5%. The components of the payout rate are 4.4-4.5% for academic and programmatic spending, 0.1% for Foundation overhead and 0.4-0.5% for University advancement overhead. The executive committee sets the payout rate based upon multiple factors. The payout rate is designed to create inter-generational equity by balancing the current and future needs of the University. Primary consideration is given to providing stable funding to the University while being mindful of preserving the endowment value.