All Endowments require a signed Gift Agreement document that is agreed to by both the donor and the Foundation. This document spells out the mutual expectations and any special conditions requested by the donor. This document is legally binding on all parties, so please make sure you agree with the conditions before signing the document at the time of your gift.
One purpose of this document is to preserve the gift so that future generations of students at Radford University can benefit from your gift.
For example, unless agreed otherwise, the annual scholarship amount from your gift will be determined by our Board of Directors. Our Board will review our policies on an annual basis and may periodically change them. Our current spending policy for scholarships, as set by the Board, is 4% of the value based on the average value over the last five years. Please click on this link: Approved Spending Policy for the complete and formal Endowment Spending policy.
Secondly, our Board also sets the fees we charge for managing the endowments. These fees are used to help operate the Foundation and honor our commitments to Radford University. The fees are also reviewed annually by the Board, but will not be more than 2% of the market value on June 30 of the prior year.
Finally, the Board also reserves the right to annually determine the impact of market losses (when they occur) on our ability to pay out scholarships. The Board MAY, at its discretion, determine that any endowed funds which are underwater will not pay out a scholarship for a period of time so that the principal can grow, thereby ensuring that your gift will continue in perpetuity.