What is an endowment, and does Art Center have one?
An endowment program simply allocates certain gifts to an investment fund. This fund is invested to earn income each year, and as the principal grows, so does the interest on that income—a portion of which is paid out each year to fund key areas vital to Art Center’s mission. These areas vary according to the wishes of donors in agreement with the College. Art Center’s endowment funds scholarships, professorships, endowed chairs and academic programs like Designmatters. As of 12/31/07, Art Center’s endowment value was $42.9 million. The Board-approved spending policy is 5% of the net assets, which are applied to the purposes of the endowment as defined by the donor in agreement with the College. Any overage on the returns is reinvested back into the endowment’s principal.
