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David Han

Drexel University Endowment

Ensure Drexel’s Long-Term Growth and Impact by Creating Endowment Funds

Support for the University’s endowment by establishing new endowed funds is essential for fueling Drexel’s future growth and impact. Endowed funds create and sustain long-term opportunities for student success, pioneering teaching, high-impact research, campus development and more active engagement with our communities.

In 2021, Drexel University’s endowment surpassed $1 billion for the first time, increasing Drexel’s ability to support and expand its academic and research goals for current and future generations and validating the University’s strategy for managing its financial assets.

Better understanding how Drexel’s endowment is structured and utilized can help donors make strategic decisions on how creating and/or contributing to an endowed fund(s) will help you most effectively realize your philanthropic objectives.

What Is an Endowment?

The endowment is a pool of funds that provides a predictable and sustainable source of funding to support the University’s mission.

An endowment is not a bank account or a rainy-day fund. It’s more like an annuity, where money is invested with the goal of paying out a steady income stream over a lifetime – or, really, many lifetimes.

Many of Drexel’s endowed funds were established by individual donors to achieve a specific purpose over time – e.g., to provide scholarship funds to students enrolled in a specific school or college and/or pursuing studies in a particular discipline or department. Endowed professorships further the intellectual pursuits of faculty and to broaden University research into new areas of discovery that benefit human society. Drexel’s endowment also supports classrooms, laboratories, libraries and academic programs, as well as campus life priorities including athletics.

In addition to supporting daily operations, the endowment is intended to sustain the University for many decades to come, through periods of economic growth as well as through downturns and recessions.

Drexel’s Investment Office manages financial assets for the endowment with guidance from the investment committee of the University’s Board of Trustees.

Learn more about endowment investments.

How It Works

When a gift is designated to the endowment, Drexel accepts responsibility for ensuring that the donation fulfills and sustains its intended purposes in perpetuity.

Guidelines determine the portion of the endowment Drexel spends for those purposes each year, known as the payout rate. Drexel’s current payout rate is 4.75 percent.

Example: A proposed endowed fund for scholarships

 

Investment

 

Annual Scholarship Funding Available @ 4.75%

Award Per Student

 

Number of Students Per Year, In Perpetuity

$5 million

$237,500

$10,000

24

$5 million

$237,500

$5,000

48

$1 million

$47,500

$10,000

5

$1 million

$47,500

$5,000

10

$100,000

$4,750

$4,750

1

$100,000

$4,750

$2,375

2

 

Establishing an Endowed Fund

Endowment gifts can be pledged and paid over a period of up to five years. The minimum to establish a named endowed fund at Drexel is $25,000. In many cases, opportunities exist to name these funds to honor a family member, loved one, mentor or member of the Drexel community.

Gifts can be made to several university priorities – generally requiring a minimum investment level – including (but not limited to) the following:

TEACHING AND LEARNING

  • Deanship
  • Department Head
  • Professorship
  • Athletics Director
  • Head Coach

STUDENT SUCCESS

  • Undergraduate Scholarship (full tuition)
  • Undergraduate Scholarship (partial tuition) – restricted use
  • Undergraduate Scholarship (partial tuition) – unrestricted use
  • Graduate Scholarship (full tuition)
  • Medical Scholarship (full tuition)
  • Doctoral Fellowship (full tuition)
  • International Co-op (full)
  • National or Research Co-op (full)
  • Entrepreneurship Co-op (full)
  • STAR Stipend (full)

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Contact Us

215.895.2612

Mail your gift to:

Drexel University
P.O. Box 8215
Philadelphia, PA 19101-9684

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The Future is a Place We Make: The Campaign for Drexel