CAROLINA’S ENDOWMENT
Endowment funds provide support for everything that Carolina must do: Recruit the best students and faculty; generate trailblazing research; and work for a better world.
What is an endowment?
An endowment is a permanent fund invested for long-term growth. The principal remains intact while a portion of earnings provides reliable support for the University year after year. Endowments help Carolina sustain excellence through changing economic conditions and provide lasting support for scholarships, fellowships, faculty, research, arts programming, public service, clinical care and more.
Creating an endowment reflects a donor’s commitment to Carolina's mission and ensures their generosity makes an impact for generations to come.
Endowment 101
Nate Knuffman, Carolina’s vice chancellor for finance and operations and chief financial officer, demystifies the UNC-Chapel Hill endowment.
Annual endowment reports
Invested to generate support in perpetuity, endowments will make an impact for every generation. View the reports at this link to see fund balances, disbursements and growth over recent fiscal years.
Spending distribution policy
Endowment funds play a primary role in the funding of higher education and have become a crucial source of support to the University. CHIF uses a constant-growth spending policy, which generally increases annual distributions in line with inflation. This approach is designed to:
- Provide stable, predictable support for endowed programs.
- Help distributions grow over time.
- Reduce the impact of short-term market fluctuations on annual spending.
The annual distribution rate is generally maintained within a range of 4% to 7% of market value. An administrative fee, currently 1.25%, supports fundraising, stewardship and investment management activities.
Distributions from endowed funds held in CHIF are made annually by the end of June to be available for spending according to the terms of your gift agreement. Distributions from endowed funds held in The University of North Carolina at Chapel Hill Foundation, Inc., are approved by the Foundation Board in October and granted to the benefiting departments at that time.
Sufficient income distribution is obtained when an endowment is fully funded and has been invested for a full fiscal year. Distributions from an endowed fund that is being paid as part of a pledge may be used after the pledge has been completed and has been invested for one (1) full fiscal year.
Administration and management
Your endowed Fund will be administered in accordance with the policies and procedures adopted by the CHIF Board, and shall be consistent with the following University policies and procedures:
- The Fund shall be used only for a qualified charitable purpose consistent with the laws of the State of North Carolina and section 501(c)(3) of the Internal Revenue Code.
- The assets of the Fund may be merged or pooled for investment and investment management purposes with the general endowment or other assets but shall be entered on the books and records for your Named Fund. All gifts to and accumulated earnings of the Fund will be invested in the CHIF investment pool and will receive a prorated share of the pool’s net income or losses.
- Distributions and reasonable fees associated with securing, raising, investing and administering an endowment shall be charged to the endowment in accordance with the policies and procedures of CHIF. CHIF may charge an annual endowment administrative fee at a rate determined by the CHIF Board. The annual administrative fee will be based upon the market value of the endowment as of the valuation date. The annual endowment administrative fee, currently 1.25%, is reviewed and approved on an annual basis by the CHIF Board and is subject to change.
- UNC Management Company has been appointed by UNCIF’s Board to provide investment management services to UNCIF and CHIF as well as Fund administration and performance reporting. The Management Company works closely with the UNCIF Board and its Executive Committee, requiring their direction and approval for:
- determination of asset allocation,
- hiring and termination of external investment management firms, and
- direct purchase or liquidation of assets.
Endowments in Action
A distinguished fellowship empowers early-career faculty like Alison Axtman to push the boundaries of drug discovery through open science.
Questions about your endowment?
Financial reports are generated annually for endowments that have reached the funding minimum. Reports provide a summary of your fund’s balance, disbursement and investment return within the previous fiscal year (July 1-June 30), as well as a summary of its impact. You may also receive special messages of gratitude from students, faculty and staff who have benefitted from the gift, but this cannot be guaranteed.
Donors of new endowments can expect to receive their first stewardship packet 12 to 18 months after fully funding their endowment, depending on when the investment in CHIF is made. In some cases, you may receive periodic financial reports as your endowment is funded.
When will I receive my annual endowment report?
Annual reports are produced in the fall. Depending on the purpose of your endowed fund and the timing of when beneficiary/impact statements are received, you could receive your report anytime between November and March. Most reports are sent digitally.
Who can I contact if I have questions about my fund?
You can contact Donor Relations in the University Development Office if you have questions about your fund. Contact information is provided below.
Who manages the investment of the Funds?
The UNC Management Company, Inc. has been appointed by UNCIF’s Board to provide investment management services as well as administration and performance reporting.
When will my gift start making an impact?
Your endowment may start generating an annual spending allocation once the gift agreement is signed by all parties, the endowment minimum is met and the money has been invested for one year. If the gift agreement has been signed by all parties, you may provide a current year gift to be used to support the purpose of your Fund while the endowment minimum is being met and invested. The current year gift will not count toward reaching the endowment minimum.
I established a scholarship. May I pick the recipient?
Scholarship recipients are selected by the University and the respective selection committees where your scholarship was established, for example, by the Office of Scholarships and Student Aid for most need-based scholarships. Donors are informed about the recipient(s), but are not involved in the selection process, as that could negate the deductibility of the gift.
How do I contact the beneficiary of my endowment?
The University provides opportunities for you to connect with those who benefit from your fund through annual or semi-annual events, lunches or virtual meetings. The Office of Donor Relations is always happy to coordinate a personal connection with your scholarship recipient or member of our faculty. Under federal educational laws, and with the utmost respect for everyone’s privacy, we must first obtain explicit written approval to share any information about a scholarship recipient outside of the University. We encourage students to share stories of gratitude and impact but this cannot be required of a student as part of a scholarship award.
How do I know the funds are being spent in accordance with my intentions and objectives?
Compliance with donor intent is one of our fundamental responsibilities, and many areas of the University are dedicated to ensuring donor objectives. Gift agreements between you and the University or an affiliated foundation establish the purpose of your fund and document donor intent, ensuring your gift is held in a fund for that purpose. Regular reviews and audits of endowment spending activity ensure that donor intent is being followed and income distributions are being spent accordingly.
Is it possible to send my endowment report to others?
Yes, we are happy to send annual endowment reports to individuals of the donor’s choosing. Please complete the survey that is sent following the receipt of your annual report to indicate the name, address, email and phone number of the individual(s) who should also receive future reports. We can also send your annual report electronically rather than through the mail.
Thank you
We deeply appreciate your generosity, dedication and belief in Carolina’s potential.
By choosing to invest in an endowment, you demonstrate a clear understanding of the importance of long-term financial strength. Your support not only helps us recruit outstanding students and elevates our teaching and research excellence — it also empowers Carolina to engage meaningfully in global conversations that shape our future. The remarkable achievements unfolding across our campus are made possible by visionary individuals like you — those who choose to say “yes” to lasting transformation.
Thank you for the enduring legacy your gift creates for generations of Tar Heels to come.
The latest annual report for the Chapel Hill Investment Fund is available for download at the UNC Management Company's website.
Contact the Office of Donor Relations: