The Basics
How an ISU Foundation endowment fund works:
- First, a donor works with the ISU Foundation and an ISU department to set up a memorandum of agreement (MOA).
- Second, the ISU Foundation puts the endowment in an investment pool where it will begin to accumulate earnings.
- Earnings should be available for spending six months after the gift is made. Distributions of earnings are made each quarter.
- Program/department representatives spend the earnings based on the terms in the MOA and the amount of funds available.
- In the case of student scholarships, the Office of Student Financial Aid transfers awards to the student's university account.
- Lastly, funds are transferred electronically every month from the ISU Foundation account to the parallel university account as reimbursement for that month's expenditures.
- ISU endowments operate in a similar fashion. Contact Brad Dye with any questions.