FIN 216: ASU Endowments
To describe the ASU endowment accounts
An endowment is a transfer of money or property donated to an institution with the stipulation that it be invested to allow the donation to have a much greater impact over a long period of time than if it were spent all at once. The ASU endowments consist of permanent (or true) endowments, term endowments, and quasi-endowments.
The investments of the ASU endowments are managed by the ASU Foundation in a diversified investment portfolio for the generation of long-term investment returns. The asset allocation of the investment portfolio is almost identical to the allocation of the ASU Foundation endowments.
The annual earnings available for spending are determined annually by the ASU Foundation and the university and are placed in the endowment income account for each endowment on June 30th of each year for spending in the ensuing fiscal year. To fully meet the intent of the donors, the annual income should be transferred by April 1st of that fiscal year to an ASU scholarship or local account for spending in accordance with the donor stipulations. Any funds remaining in the endowment income accounts as of April 1 of each year are automatically transferred from the income account to the endowment for long-term investment and, consequently, will not be available for current spending.
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