Types of Funds Managed

The Campanile Foundation is responsible for receiving and managing gifts in support of San Diego State University. In the discharge of this fiduciary responsibility, The Campanile Foundation receives and manages gifts for scholarships, program support, academic departments, colleges, and the University. Gifts fall into two main categories: current use gifts and endowment gifts.

In order to meet the fiduciary responsibilities the Foundation has to donors, funds are segregated into three different types of accounts.

Scholarship gifts are put into A-Accounts and are, by board policy, exempt from administration fees. Scholarship funds may come from annual current gifts and/or income from a scholarship endowment fund.

Current use gifts (other than scholarships) are put into C-Accounts and are subject to a 6% administrative fee when expended. These funds normally come from current use annual gifts but could also come from the quarterly distributions from designated endowment funds.

Endowment gifts are put into N-Accounts. Endowment funds participate in the endowment investment pool in a manner similar to a mutual fund. Each account has a pro-rata share of the endowment pool and will earn income based on the relative percentage of the market value of shares owned on each quarterly valuation date. True endowments may not distribute any of the original principal of the gift to the program beneficiary. Quasi endowments may expend the principal and the earned income at any time for their specified purpose. The Campanile Foundation Board of Directors establishes on an annual basis a distribution rate for endowment income. The rate for 2014-2015 is 4.0% of the three-year moving average of the market value. Both true and quasi endowments utilize this distribution rate; however, if the market value of a true endowment falls below the original principal value, only interest and dividends earned will be distributed. A quasi endowment receives the full 4% distribution regardless of market conditions.