Endowment Support

One of the college’s primary goals (as identified by the strategic planning process) is to substantially increase the Luther College endowment—a perpetual fund composed of donor gifts that are retained and invested by the college. Earnings from the endowment are available each year to support college programs and scholarships as designated by the donor.

Please note: All amounts discussed in the following sections are for donors who will fund the endowment through an outright gift or pledge. You may also choose to fund a named endowment through a planned gift. However, that may require a larger amount due to the timing of the gift. Please consult directly with the Development Office for specific details.

What is the Luther College spending policy?

The Luther College Board of Regents has established a yearly spending rate of 5 percent. This means that each year 5 percent of the value of the endowment is taken from the earnings to provide scholarships, teaching support, and other program enhancements. All earnings and growth of the endowment over the 5 percent spending allowance are reinvested in the endowment fund.

The spending rate of 5 percent of the value of the endowment is calculated on the endowment's twelve-quarter average market value prior to March 31 of each year. This method of calculation provides for year-to-year consistency in the value of the spending allowance.

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