Giving To LMU
The endowment fund supports student scholarships, faculty chairs, faculty development and facility maintenance.
What is an Endowment?
An endowment is an aggregation of assets invested by the University to support its educational mission. An endowment allows donors to transfer their private dollars to public purposes with the assurance that their gifts will serve these purposes for as long as the institution continues to exist.
An endowment represents a compact between a donor and the University. It links past, current and future generations. It allows an institution to make commitments far into the future, knowing that resources to meet those commitments will continue to be available.
Endowments serve the University and the public by:
Providing stability. University revenues fluctuate over time with changes in enrollment (tuition), donor interest (gifts) and public (largely state and federal) support. Since principal is not spent, endowments generate earnings year after year. Endowments support faculty position, innovative academic programs, libraries and student aid.
Leveraging other sources of revenue. An endowment allows the University to provide a higher level of quality or service at a lower price than would ever be possible. Without endowments or other private gifts, institutions would have to cut back on their programs, raise their prices to students or obtain additional public funding to maintain current programs at current prices.
Encouraging innovation and flexibility. An endowment enables faculty and students to conduct innovative research, explore new academic fields, apply new technologies and develop new teaching methods even if funding is not readily available from other sources.
Allowing a longer time horizon. Unlike gifts expended upon receipt, an endowed gift keeps giving over time. Endowed institutions can plan strategically to use a reliable stream of earnings to strengthen and enhance the quality of their programs, even if many years will be required to achieve some of their goals. By making endowed gifts, alumni and others take responsibility for ensuring the long-term well-being of the University; their gifts enable future generations of students to benefit from a higher quality of education and allow these institutions to make even greater contributions to the public good.
Endowment Pay-out Policy
It shall be the policy of the Board of Trustees of Lincoln Memorial University that a three-year moving average will be used to determine the actual amount which shall be transferred annually from the endowment investment account to Lincoln Memorial University. A payout policy of four (4%) percent on a three-year moving average of the market value of the endowment fund at July 31 is used to smooth out fluctuations in the market value and decrease volatility in the budget process. (Approved by the Endowment Committee Monday, October 29, 2001.)
Lincoln Memorial University
Cumberland Gap Parkway
P.O. Box 2005
Harrogate, TN 37752
423.869.7072 or 800.325.0900, ext. 7072