The Cal State Fullerton Philanthropic Foundation (CSFPF) is responsible for the University’s endowment which is comprised of hundreds of individual funds or “units” in the endowment pool. Each individual endowment fund is created by an agreement between the CSFPF and a donor(s) for a particular purpose. Endowed funds are established with a minimum $25,000.
The CSFPF board of governors has delegated the management of the Endowment to the Finance & Investment Committee. A formal Investment Policy Statement provides the guidelines, consistent with the fiduciary obligations of 501 (c) 3 organizations and the Uniform Prudent Management of Institutional Funds Act (UPMIFA), for the management of the endowment investments. The Foundation invests with the intent to earn the annual spending policy distribution amount, plus account for inflation and cover any fees incurred.
Currently, spending distribution to endowment distribution accounts are determined each fiscal year by the CSFPF board of governors. The spending rate is calculated on a 60 month moving average. The purpose of a moving average spending policy is to reduce the volatility of distributions that might be produced by the up and down financial markets. Currently, distributions are made semi-annually in September and February each fiscal year.
CSFPF also assess a management fee on endowments as determined by the CSFPF board of governors. The current fee is 1% of the 60 month rolling average market value.
Once the funds are transferred to the endowment’s spending/distribution account, the administrator responsible for those funds may utilize the funds in accordance with the terms and conditions of the endowment.