Endowment Support

Gift Amount

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 endowment growth goal?

The endowment growth goal is established by the Luther College Board of Regents. The Board of Regents has established a long-term goal for the endowment to grow. To achieve this goal the endowment must grow at an average annual long-term rate of 8.75 percent, calculated as follows:

Spending allowance 5.00%
Inflation forecast 3.00%
Endowment management expense 0.75%
Total return needed to achieve growth goal 8.75%

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