Endowment Payout Process @Stanford

The Endowment provides an ongoing source of income to support the University's teaching and research mission. It is a collection of gift and reserve funds invested primarily in the University's Merged Pool, and with few exceptions these funds are intended to be invested and drawn upon in perpetuity.

Endowment payout is the dollar amount distributed to each fund based on the Board of Trustees approved Merged Pool payout rate per share and the number of Merged Pool shares held by each fund.

Prior to September 2013, endowment payout was distributed annually; beginning September 2013, distribution occurs monthly. See FY14 Endowment Payout Process Change.

Endowment Payout Process

Each February, the Board of Trustees approves a payout amount per Merged Pool share for the following fiscal year, based on the University Budget Office's proposed spending rate. The new payout rate goes into effect at the beginning of the following fiscal year, and endowment payout is distributed monthly to each fund based on the number of Merged Pool shares held by that fund.

Payout is made using each funds' appreciation and earnings, and as payout is distributed, share value declines accordingly. The monthly calculation to determine share value also takes into account market fluctuations (appreciation / depreciation). Learn more about Share Value Calculations.

Click on the steps in the graphic below to learn more about the monthly endowment payout process:

(Show | Hide all steps)
Stanford Endowment Payout Process


See also:  Example depicting Payout Process Steps by Share Type

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Resources for Finance Staff
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bullet 1 View Recorded Tutorials:

bullet 2 Download PowerPoint Presentations:

Note:  Presentations include animation that must be viewed in Slide Show or Play mode. Detailed explanation of concepts are included on the Note Pages.

bullet 3 OBI Revenue and Fund Management (RFM) Reporting

bullet 4 Share Value Calculations

bullet 5 Withdrawal Guidelines / Form for True Endowment Funds

bullet 6 Investment and Withdrawal Guidelines / Form for Funds Functioning as Endowment (FFE)

bullet 6 Investment and Withdrawal Guidelines from the Intermediate Pool

bullet 7 Glossary of Endowment Related Terms

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Getting Support
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  1. See Frequently Asked Questions
  2. Contact your local finance leaders
  3. Contact your designated Fund Accountant within Stanford's Controller's Office

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