How do I create an endowment?
It is simple. Contact the Office of University Advancement at (575) 646-1613 or 800-342-6678 and we will craft a gift agreement that will govern your gift according to your wishes. You may designate your endowment for a specific purpose as long as it is consistent with university policy, state, and federal laws. Once the gift is accepted, the conditions are followed in perpetuity. Endowments may be funded with cash, securities, or deferred gifts through a one-time gift or installment payments for up to five years.
How is the spending allocation determined?
The amount of funds available for distribution from the fund to the beneficiary colleges, departments, units, and programs during each fiscal year shall be determined from prior year’s market performance. The allocation is a weighted allocation of two numbers- the target spending based on the quarterly endowment market values, and the previous year’s spending adjusted for inflation.
Endowed gifts received by the Foundation are pooled for investment much like a mutual fund investment. The distribution payment is established on an annual basis by the Board of Directors of the NMSU Foundation.
The Foundation’s Board of Directors may change the management fee policy and/or the spending policy from time to time to protect the intergenerational equity of the endowment.
How does the market affect my endowment account?
Earnings added to the fund fluctuate with the markets. Although our portfolio is well diversified, some investments might occasionally lose value. The spread of the investment allocations helps compensate for losses by a particular style of investment and takes advantage of earning realized when an investment style is in favor with the market.
Annual endowment reports provide timely, accurate fiscal status and growth of each fund. Reports are mailed to donors and donor representatives of each fund. Recipient names are included for the endowed scholarship funds.