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.

How is the endowment invested to meet its growth goal?

The Board of Regents has established formal investment guidelines for acceptable levels of risk and return. Risk is controlled by diversifying the endowment into several asset classes, including domestic and international stocks and bonds, and alternative investments (such as hedge funds and real assets). The Board of Regents does not engage in market-timing strategies which attempt to anticipate upward or downward movements of the securities markets. Management objectives are focused on both returns and risk, not returns alone.

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