Named Endowments

A gift in perpetuity

The Cal Alumni Association offers many opportunities to contribute to existing endowments and establish new named endowed funds with a gift of $100,000 or more.1

What is an endowment?

An endowment is a type of gift that supports undergraduate Cal students over an extended period. The principal of the gift is invested, and a portion of the return is used each year to support the CAA Alumni Scholarship Program designated by the donor.

Gifts of endowment of $100,000 or more may be named for the donor or someone the donor wishes to honor or memorialize. Donors have the option to make pledge payments for up to five years.

Who does my endowment help?

Endowments support undergraduate Cal students for up to four years, depending on the specific scholarship program. As a donor, you can designate preferences for the type of student to receive the funds, including geographic area and field of study. Donors have the opportunity during the year to meet their students, including at an annual luncheon.

Gifts of endowment to CAA will sustain the University’s world-class academic excellence and strengthen the campus’ core mission to serve the greater good.

What are the benefits of establishing an endowment?

An endowment ensures your principal gift remains inviolate and invested – allowing it to grow and give indefinitely.

How are CAA endowed gifts invested?

The principal of an endowment is held intact and is invested for growth to retain its ability to provide a steady flow of income to CAA Alumni Scholarship Programs. The Achievement Award Program and The Leadership Award endowments are managed by the UC Berkeley Foundation. The Equity Scholarship endowments are managed by the Cal Alumni Association. There is an initial modest fee to cover the fundraising and processing costs. This fee has minimal impact on future growth of the principal or payout from the gift.

When will a gift of endowment start to provide funding?

Since July 1, 2006, all new endowment gifts to UC Berkeley and CAA Alumni Scholarship Programs, including additions to existing funds, are invested for six months in a short-term interest-bearing account before being invested in the endowment. Interest from this short-term investment is used to support fundraising efforts and other priorities.

After the six-month short-term investment period, endowment gifts are invested as specified by the gift agreement. Subsequent distributions to the benefiting scholarship program are made annually.

How is the endowment’s financial performance reported to donors?

In the late fall of each year, endowment donors (or their heirs) receive an annual report of financial performance.

How does an endowment differ from an annual gift?

An annual gift is an outright one-time, tax-deductible cash contribution. An endowment is fully tax deductible and can be named for you, the donor, a family member, or someone special.

Endowment holders participate in unique student-donor activities.

How can I make an endowed gift?

Endowments can be made through a variety of giving options either during your lifetime or at the time of your passing. During your lifetime, you can fund an endowment with cash, securities, real estate, or a life-income gift. Also you can create an endowment through a will/living trust bequest or via a retirement plan/insurance policy beneficiary designation. Please contact Jennifer Mora at 510.900.8205 or jennifer.mora@alumni.berkeley.edu.

1Endowment gifts less than $100,000 are accepted and designated to the general scholarship endowment of your choice.