What is an Endowment?
An endowment is created by donors to provide long-term sources of funding. Endowments can be specifically focused or generally designated for the most critical research needs. Endowments are permanent funds in which the principal is held in perpetuity and only the interest generated by the principal amount is used annually.
Privately endowed funds of $2 million and more are designated as “endowed chairs or programs.” Endowed chairs and programs allow the Steele Children's Research Center to attract and retain nationally-renowned researchers who have excelled in pediatric research.
An Endowed Chair:
- Is the highest academic honor a scholar can achieve. It is a testament to his/her achievements and is vital to the recruitment and retention of the best and the brightest in the field.
- Is a mechanism of unending funding. This allows the holder of the endowed chair to retain critical researchers in his/her laboratory for years. This is even more important in this era of increasing competitive and volatile federal research funding.
- Is a worthwhile investment. Every dollar invested into the work of an endowed researcher is leveraged many times over by the chair holder and his or her team in securing major extramural grant funding.
How an Endowment Works:
- Endowment gifts provide an ongoing source of support for a position or program.
- The principal of the gift is never spent. It is invested, and a portion of the income (payout) is made available each year to support the designated research.
- Endowment payout rates are set each year by the UA and the University of Arizona Foundation and may change from year to year.
The Benefits of Establishing an Endowment:
- Serves as a permanent named tribute.
- Ensures continued progress towards finding ways to prevent and cure childhood diseases.
- Perpetuates your enduring vision.