An Endowment Illustration
This chart is designed to show the growth in the market value of a $100,000 endowment if the endowment were to start on July 1, 2009. For purposes of this illustration, the assumption is that the endowment will achieve on average 6.75% annual net return* less 4.25% spending. As you can see on the chart, the gift of $100,000 would be worth approximately $128,000 and will have made $48,000 in spending available for the use designated by the donor.
*Net return — The goal is to earn 8% in the market. The 6.75% represents an average expected 8% market return less the 1.25% annual fee used to fund the fundraising enterprise of Iowa State University.
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Endowment:
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