ENDOWED FUNDS: Gifts accepted subject to the requirement that the principal be maintained and invested to create a stream of income. Endowed funds are intended to exist in perpetuity. Only a portion of the earnings are expended to benefit the program or activity designated by the donor.
HISTORIC GIFT VALUE: The total original value of all contributions made to an endowed fund, representing the sum of all donor gifts at the time they were given. This amount does not change based on investment gains or losses and remains unaffected by market performance. It serves as the baseline that must be preserved in perpetuity, reflecting the donor’s or donors’ original intent and investment.
MARKET VALUE: The total current value of an endowment, including the original gifts and all investment gains or losses. It is used in the annual spendable income calculation.
SPENDABLE INCOME: The portion of an endowment's investment earnings that are available to spend each year in support of the fund's designated purpose.
ABOVE-WATER FUNDS: Funds where the market value exceeds the historic gift value by at least the calculated spendable income and fees.
AT-RISK FUNDS: Funds where the difference between the market value and historic gift value is less than the calculated spendable income and fees.
UNDERWATER FUNDS: Funds where the market value is less than the historic gift value.
UPMIFA: A Maryland state law that guides how nonprofits manage and spend endowments wisely, balancing current needs and long-term growth, while honoring donor intent.
UMB: University of Maryland, Baltimore
UMBF: University of Maryland Baltimore Foundation, Inc.
USM: University System of Maryland
USMF: University System of Maryland Foundation
COMMON TRUST: Common Trust of the University System of Maryland