BACKGROUND: The majority of the University endowment was built during the Vision 20/20 initiative prior to 2010. This initiative was part of the Commonwealth of Kentucky’s “Bucks for Brains” Endowment Match Program. Since that time, those original contributions have been allowed to grow to build the endowment.

Approval is requested to begin expending income from the endowment beginning with the 2018-2019 fiscal year. Funds will be used, as directed by the original donors, for scholarships, endowed professorships, and other directed activities.

For the first year, spending authority of 4.8% of the market value of the endowment is requested.

SUMMARY OF PROGRAMS/ ACTIVITIES: The President will also appoint an Investment and Endowment Committee which will develop an investment policy and a spending policy to be presented to the Board of Regents. The committee will also monitor investment performance, the use of endowment income, and evaluate and select investment managers used by the University.

A full endowment report will be developed as required by the Council on Postsecondary Education. Donors will also receive annual reports as to the disposition of endowment income.

ALIGNMENT WITH STRATEGIC GOALS: Goal 3 – Increase the University’s Financial Strength and Operational Efficiency.

Goal 4 – Enhance the Impact of External Relations and Development.