From details about our mission and programs to guidance on how you can contribute and make a difference, we aim to provide clear and concise answers to common inquiries about the George Mason University Foundation. Learn more about our mission today.
The George Mason University Foundation (foundation, GMUF or GMU Foundation) is a charitable 501(c)(3) organization established in 1966 to receive, manage, invest, and administer private gifts, including endowment and real property, made in support of George Mason University (university or GMU). The Foundation is an entity independent of the University, but operates to support the University.
The Investment Committee is the standing committee of the Board of Trustees established to fulfill its oversight responsibilities over investment policies, performance, and other investment-related matters. Establishing asset allocation targets and developing an investment policy statement are at the heart of the fiduciary process. The Investment Committee oversees the foundation’s investment policy statements for the endowment and restricted portfolios. The Investment Committee also selects the foundation’s investment advisors, subject to approval by the Board of Trustees. The GMU Foundation utilizes an outsourced chief investment officer (OCIO) model in managing its endowment and restricted portfolios. The Investment Committee meets quarterly to review investment and OCIO performance and reports the results to the Board of Trustees.
Yes, GMU is a public university but receives less than 15 percent of its operating budget from the Commonwealth of Virginia. Private funds are critical to preserving and growing the university’s academic excellence.
An endowment can be created with a minimum commitment of $50,000. These endowed funds can be named in honor or memory of a family member, a beloved professor, or another individual or group. They may be created for various educational purposes at GMU, including scholarships and faculty support. For more information, contact the Office of University Advancement.
The GMU Foundation expects that over time, investment returns will not only preserve but enhance the absolute value of the endowment after funds are released for use; the objective is to achieve real growth at least equal to the inflation rate plus the current spending rate in the long term. In so doing, the GMU Foundation preserves the purchasing power of endowment assets for future generations.
The annual endowment payout of an individual endowment account is equal to the prior year’s payout distribution increased for inflation (Consumer Price Index), with annual distribution to remain above 3% but not to exceed 6% of the prior year’s fair market value. The endowment payout for endowment accounts for which the market value is below the original gift value will receive a payout of 2% of the prior year’s fair market value. Payout distributions for new or just fully funded endowments are calculated at 1.25% of the gift corpus in the first year.
The foundation does not determine the use of donor-restricted funds. Donors may give restricted expendable funds to the GMU Foundation to support the donor’s intended use. Donors also make commitments to the GMU Foundation in the form of endowments that are restricted to particular priorities — such as scholarships, professorships, or programs, and distributions from the endowment fund support the donor’s restrictions as to use.
Gifts to endowment are invested in perpetuity. Annual distributions from the endowment increase the balance of expendable funds. Alternatively, expendable funds, whether restricted or unrestricted, can be entirely spent in support of a donor’s intended use.
An endowment is fully funded at the designated amount (usually $50,000). Payout distributions for new or just fully funded endowments are calculated at 1.25% of the gift corpus in the first year. After that, payout distributions are calculated based on the prior year’s amount plus an inflation factor (see above).
Expendable funds are invested in a highly liquid, low-risk portfolio to ensure these funds are available when called upon.
The perpetual nature of the endowment allows the GMU Foundation and the Board of Trustees to take a long-term perspective in developing its endowment investment policy, which in turn enables the implementation of its investment strategy without being significantly influenced by the day-to-day fluctuations of the financial markets.
