Exactly how is the spendable income used?
The spendable income from each endowment fund is used to support the fund’s direct costs, as well as a portion of indirect costs. Distributions from scholarship endowments, for instance, generally fund full or partial scholarship grants and support indirect costs associated with those grants. Distributions from faculty chair endowments generally support the salary and fringe benefits of the chair-holder and other expenses relating to the chair-holder’s teaching and research. The size of a particular student’s grant or a particular faculty member’s salary will be determined by the university, of course. Endowment distributions will be used to help meet the cost.
