How much endowment income is spent each year?
Recognizing the need to limit endowment spending to preserve the endowment’s long-term value, the Investment Committee has determined that the annual payout rate should be five percent of the market value of investments. Five percent is considered to be the maximum sustainable payout rate to secure long-term value and is a common payout rate for university endowments of TCU’s size. The largest portion of the spendable endowment income each year is unrestricted and can be used for any program or University need. In Fiscal 2008, at least 72 percent of endowment spending will fall into this category. About 15 percent of spendable endowment income is allocated to scholarships, five percent to endowed chairs and professorships and the remaining eight percent to other programs.
Recognizing the need to limit endowment spending to preserve the endowment’s long-term value, the Investment Committee has determined that the annual payout rate should be five percent of the market value of investments. Five percent is considered to be the maximum sustainable payout rate to secure long-term value and is a common payout rate for university endowments of TCU’s size. The largest portion of the spendable endowment income each year is unrestricted and can be used for any program or University need. In Fiscal 2008, at least 72 percent of endowment spending fell into this category. About 15 percent of spendable endowment income is allocated to scholarships, five percent to endowed chairs and professorships and the remaining eight percent to other programs.
