About Endowments
endowment's annual income ensures a consistent and dependable source of funding for the future. By establishing endowed funds, MSU Texas can secure essential resources to support its mission, especially in light of declining federal and state support for higher education. They give MSU Texas administrators the ability to make and pursue long-range plans in areas such as scholarships, research, and overall support of the university.
By creating an endowment, donors can witness the impact of their contributions in inspiring and promoting excellence today, while also ensuring the university's future and positively impacting countless lives for generations to come.
Endowment Frequently Asked Questions
What is an endowment?
How does an endowment work?
- An endowment is a gift of assets that is strategically converted into long-term investments to provide sustainable, long-term financial support.
- Each year a portion of the market value from your endowment is transferred into a spending account, making it available to the university beneficiary you designate.
- Only the earned returns on your endowment are spent; the principal remains intact, yielding benefits to the university in perpetuity.
- Endowment donors receive reports on their investments each year, describing the financial performance of their gift, how their endowment enhances the investments and how their gift continues to make a difference at MSU Texas.
Why does a public university need an endowment?
A university's financial stability, regardless of its size or public/private status, relies on having endowments. While state funding can provide a foundation for budget allocations, it falls short in supporting programs that elevate a university's reputation on a national and international level. Unfortunately, state funding has been on a decline in recent years.
An endowment allows MSU Texas to:
- offer additional scholarships to students
- attract and retain the best faculty and researchers, and
- continue to advance strategic learning, problem solving, and improving the overall educational experience for the next generation of leaders.