The UPAAA Permanent Endowment Fund is professionally managed
and invested in the USA.
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HOW do I establish an Endowment Fund? Once you decide to create a PEF, contact the UPAAA Finance and Funds Committee at info@upaainamerica.org. A team consisting of members of the Committee will work closely with you to help define the features of your endowment to meet both your wishes and the needs of the University of the Philippines. Gifts to our Permanent Endowment Fund are invested to grow and provide long-term support. To protect the fund’s strength, your gift must be invested for at least two full fiscal years before it begins generating distributions. After that, a portion of the fund’s annual earnings (currently 5%) will be made available each year to support scholarships and programs, while the rest is reinvested to keep the fund growing for future generations. |
Frequently Asked Questions about Our Permanent Endowment Fund
Q: When will my endowment gift begin supporting programs?
A: Endowment gifts are invested to grow and provide long-term support. To protect the fund’s strength, your gift must be invested for at least two full fiscal years before it begins generating distributions. After that, annual support is made available from the fund.
Q: How much of the fund is spent each year?
A: We follow a 5% spending policy, meaning approximately 5% of the endowment’s average market value is made available each year for scholarships and programs. This balance ensures steady support today while protecting the endowment for the future.
Q: What happens to the rest of the earnings?
A: Any investment returns above the annual payout are reinvested to grow the fund, so your gift continues to make a lasting impact for generations.
Q: Can I designate how my endowment gift is used?
A: Yes. Donors may create named endowment funds or designate their gifts for specific purposes, such as scholarships, academic programs, or community outreach. A Deed of Donation is completed each time a donor gives a gift so future generations of UPAAA leaders can honor your wishes.
The University of the Philippines Alumni Association in America, Inc. is a 501(c)(3) nonprofit organization based in the United States. Section 501(c)(3) is the portion of the US Internal Revenue Code that allows for federal tax exemption of nonprofit organizations, specifically those that are considered public charities, private foundations or private operating foundations.
