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Investing In Eternity

ENDOWMENTS CHANGE LIVES!

Southern Adventist University operates through the grace of Jesus Christ and His blessing on private gifts, tuition, business income, and earnings from our endowment. The endowment primarily supports $2M in scholarship for students each calendar year. Its established base and predictable year-over-year earnings mean that Southern’s scholarship awards can remain consistent each year. 

Amount of Endowed Scholarships Awarded Last Year

$1.4M

Total Endowment Value

$63M

Total Number of Individual Funds In Endowment

285

common endowment questions

What Is An Endowment?
An endowment is an integral part of an organization’s fiscal sustainability. It ensures a growing stream of reliable income year over year. Southern’s endowment includes donated funds and accrued interest that primarily support student scholarships as well as supporting chairs, department programming, and operations. 

As a result of compounding interest, an endowment not only pays out funds each year but also continues to grow the endowment's base amount. For example, let's assume a scholarship endowment was established with a gift of $25,000. Over the past 10 years, that one gift would have provided $12,000 in scholarship funding while the gift value would have also grown to $30,000.

Each individual established endowment–Southern has just under 300 individual, named endowments–combines to make the university’s overall endowment, which totals around $60M. Because the university is tax-exempt, the endowment is also exempt, allowing for all earnings to directly benefit the university and its students.
why are endowments important?
In a flexing and transitional financial space, an endowment offers some insulation to changing market conditions. Donated principal funds are invested, and those earnings are used to support the institution and reinvested into the endowment. Over time, the endowment becomes a very stable and reliable revenue generator. Market changes impact earnings but very rarely principal, and this allows the university to make ongoing, reliable, budget projections for endowment-funded projects.

A healthy endowment also provides financial stability that boosts confidence for lenders and creates a buffer against insolvency. Endowments are very tested and proven earning vehicles, especially for institutions of higher education with varying values from a few million to several billion.
what do endowments support?
With close to 300 named endowments making up Southern’s overall endowment, the projects they support are as varied as the donors who initiated them. Most are designated for scholarships, but even within this category, the terms vary from different affinity departments to GPA requirements to specific interest criteria. Other endowments support the salaries of academic chairs or fund special programming for a department.
how is southern's endowment managed?
As a Christian university preparing the next generation for the soon return of Jesus, the way Southern manages its financial resources needs to reflect that urgency and responsibility. The university’s endowment investment criteria and process reflect those values. Funds are invested conservatively and monitored by an outside committee of Christian and church financial leaders who share Southern’s mission. This committee is also aware of its responsibility to work with the guidance of the Holy Spirit regarding the principal of these funds–if and when that needs to be removed from the stock market for fiscally and spiritually responsible reasons.
what about Endowment Reporting and Transparency?
An overview of endowment activity is included in the university’s Annual Report. A detailed report of earnings and changes is given to the monitoring committee as well as to each endowment holder annually. In addition, donors may contact Southern at any time for information on their endowment.
How and Where Are Endowment Funds Invested?
Funds are invested in bonds, U.S. equity, and international equity using a conservative model. Stocks of questionable moral integrity (known as “sin stocks” in the marketplace: gambling, alcohol, tobacco, adult entertainment, and weapons) are excluded from investment options. A rolling five-year average of earnings is used to determine the amount pulled off the endowment for scholarships or other projects. This allows for consistent budgeting within a changing market.
Do Endowments Have Constraints or Restrictions?
The majority of Southern’s individual endowments are restricted. This means that the donors who set up the principal have restricted what their earnings can be used for to benefit areas that are or were important to them. For example, one endowment set up by a nursing alum may benefit scholarships to nursing students. Earnings from those funds can only be used for nursing students. Other restrictions may include certain GPA requirements or for the student benefitted to be involved in mission work. The university’s Advancement office works closely with donors to ensure that endowment criteria are easy to apply while reflecting the passions of the donors.

Endowment Value History

Endowment Value History

anyone can start an endowment – even you!

Creating your own endowment is establishing a legacy supporting academics and areas of campus you care about. It will outgive its principal gift and benefit students and the university long after you are no longer able to contribute financially. And you don’t have to be a millionaire to begin an endowment and start making a difference!

Click on the three flip cards below to learn more.

+ why name an endowment?

Southern has many named endowments, named for the donors themselves or for people those donors sought to honor. While certainly not required, a named endowment reminds the recipient of those endowment earnings that philanthropy helps support Christian education. A student who receives a named endowment is appreciative of the person helping him or her and feels inspired to pay it forward when given the opportunity.

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+ the power of endowment

Endowments are powerful, because they support causes the donor cares about in perpetuity. Endowments are also powerful because of their ability to outgive their principal. A $25,000 endowment will generate approximately 9% interest each year, market conditions notwithstanding. Within 12 years, it will be generating annual interest earnings that exceed the original $25,000 investment!

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+ Ways to Start

There are three ways to begin an endowment at Southern: 1) an outright, one-time gift, such as cash, stock, IRA, or DAF; 2) a gift pledge over time, usually five years or less and paid annually; and 3) a deferred gift in your estate plan. Southern’s minimum gift level to begin an endowment is $25,000. This means that you could begin an endowment at Southern with as little as $5,000 each year given to the endowment over five years.

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start my endowment

Set your criteria and leave your legacy!

Please complete the form below or contact Southern's Advancement Office for assistance:

advancement@southern.edu | 423.236.2829

How I Plan to Start the Endowment: