A gift to Middlebury's endowment helps to provide for the College in the long term. While Annual Giving supports the College's immediate needs, endowment gifts add to an expertly managed principal that continues to yield returns for each coming year.
Over the past 20 years, the endowment has averaged an 8.9 percent return on investments annually. As of September 30, 2012, the endowment's market value was approximately $895 million. Since 2005, Investure, a private investment management company, has managed the College’s investment portfolio.
Budget and Spending
Eighteen percent of the budget is drawn from endowment earnings. A portion of endowment earnings is spent each year to balance the operating budget, making up the difference between revenues and expenses.
Middlebury’s spending policy governs the rate at which funds from the endowment are released; this protects the value of the endowment and maximizes the amount reinvested for future growth. The College has set the spend rate from endowment at no more than 5 percent of the endowment's value averaged over three years.
To learn more about how Middlebury's endowment works, please read our Financial FAQ Factsheet.
Creating an Endowment
Gifts of any size may be added to existing endowed funds. The minimum gift to create an endowed fund varies depending on the fund's purpose, but is never less than $10,000. For example, the minimum for an endowed undergraduate student research fellowship is $50,000, which yields $2,500 to fund a summer of research at Middlebury. As with Annual Giving, gifts to endowment of $10,000 or more can be paid over five years.
To learn more about options for endowment gifts, please contact Stephanie Winkler, director of leadership gifts, at firstname.lastname@example.org or 802.443.5843.