The Norfolk State University Foundation, Inc. is a 501 (c)(3) non-profit fundraising corporation established to support quality education and to generate private financial support for the academic development of the University. The Foundation is governed by a volunteer Board of Directors whose members serve as advocates for the University and its programs.

The Investments Committee — a group of board directors, some of whom have well-established careers in the investment industry — serves as the NSU Foundation’s appointed members to oversee the investment of the NSU Foundation’s endowed assets with the help of a professional, experienced staff, which provides day-to-day monitoring and reporting of the endowed assets.

The establishment of asset allocation targets and the development of a “policy portfolio” are at the heart of the investment process. Though disciplined in its creation, such a portfolio has built-in flexibility to match the dynamic nature of today’s financial markets. Having established an investment policy, the Investment Committee hires a portfolio manager who implements that policy. The investment manager may make adjustments during the year depending on market conditions. The Investment Committee reviews the portfolio quarterly and can make changes to the policy if necessary.

The implemented mission-aligned investment strategy and asset allocation decisions of the endowment are supported by long-term capital market assumptions, which are reviewed quarterly. Shorter-term economic and market expectations are considered but do not overly influence portfolio changes since the endowment’s investment strategy and asset allocation are reflective of the endowment’s perpetual time horizon and annual spend rate.

The minimum amount required to establish a scholarship endowment at Norfolk State University is $25,000.00. Endowments allow donors the opportunity to name funds, university rooms, and even buildings in honor of family, friends, loved ones, or even former faculty that made an impact in their lives. Funds from these endowments support academic scholarships, athletics, programs, and the university’s areas of greatest needs.

The Foundation maintains a spending policy of up to 5% of the value of the cash, securities, and accrued interest for all its expenditures on behalf of the University and the Foundation itself. The actual percentage to be spent (the spending rate) shall be determined in advance during the year prior to the year of expenditure (currently 4%).

The amount spent shall equal the spending rate applied to the average value of the cash, securities, and accrued interest of applicable funds of the Foundation during the 3 years (12 rolling quarters) prior to the year of determination. In computing the average value, the Foundation shall value its funds for each year on the last day of the fiscal year.

Endowment agreements between the donor(s), the university, and the NSU Foundation allow donors to articulate how the endowed funds will support the university. The NSU Foundation abides by these agreements that state the donor’s wishes at the time the endowments are established. In the event a major or program is no longer in existence, the Foundation staff will work with the donor or their representative to restructure the endowment to better serve the current university priorities.

Both endowed and demand funds have naming opportunities associated with them. Endowments are established to exist in perpetuity and are invested according to the NSU Foundation’s investment policy. Demand funds, whether restricted or unrestricted, are not a part of the investment policy and have a limited life cycle, contingent upon continuous gifts to the fund.

Gifts to the endowment generate scholarship awards and/or other financial support in the third year following their inception. For illustrative purposes, a $100,000 endowed gift assuming annual earnings of 8%, and a 4% spending rate (subject to change), would generate approximately $4,200 in annual spendable funds after 12 quarters [3 years].