Donor Information and Frequently Asked Questions

The Clemson University Foundation is an independent, non-profit organization incorporated in South Carolina. Chartered in 1933, its purpose is to promote the welfare and future development of Clemson University through supporting its scientific and educational goals. Find someone specific on our Contact Us page.

• What is an Endowment?

  An endowment provides a perpetual source of income for scholarships, faculty and University programs for generations of Clemson students. Your gift to an endowment, the principal (or corpus), is invested long-term and a portion of the annual earnings are paid out to support the designated purpose for which the endowment was established. The goal is to ensure that the principal maintains its purchasing power over time to support future generations.

  As other sources of revenues such as state appropriations, grants and research sponsorships can be unpredictable, an endowment provides a consistent, reliable, perpetual source of income for programs and services that inspire and fund above-average achievement by students and faculty. The larger the endowment is, the greater the income that can be provided; and therefore, the more opportunities available for students, faculty and University programs.

  

  The Value of Clemson’s Endowment on June 30th of 2012 was $483 million. On June 30th of 2013 it was $529 million. On June 30th of 2014 it was $623 million. On June 30th of 2015 it was $649 million. On June 30th of 2016 it was $621 million. On June 30th of 2017 it was $683 million. On June 30th of 2018 it was $742 million. On June 30th of 2019 it was $775 million. On June 30th of 2020 it was $771 million. On June 30th of 2021 it was $1 billion 9 million.

• How Are CUF Assets Managed and Invested?

  The Investment Committee of the Clemson University Foundation provides direction and recommendations to the Board of Directors for the investment of the financial assets of the Foundation, and those other assets for which the Foundation has fiduciary responsibility. The primary purpose of the Investment Committee is to manage the investment and disbursement (payout policy) of assets of the Foundation and those managed by the Foundation, while maintaining prudent fiduciary standards. The Foundation employs a Chief Investment Officer that develops its investment approach in concert with the committee and directs the implementation of investment strategy.

  Each of the endowments managed by CUF essentially operates as an independent account. The assets of the individual funds or accounts are pooled and invested as a single portfolio. In addition to reducing administrative expense, this provides additional investment opportunities for these funds due to economies of scale associated with many of the asset classes. CUF invests the pooled endowment to maximize long-term returns, while simultaneously mitigating risk through maintaining a diversified portfolio.

  Asset allocation involves dividing assets on a percentage basis among different broad categories of investments. The selection of investment classes has been shown to be one of the most important determinants of a portfolio’s return. In fact, research in portfolio management demonstrates that the allocation among assets explains up to 90% of the volatility of portfolio returns, whereas stock selection explains less than 10%. Clemson University Foundation’s Board of Directors approves the Investment Policy of the Foundation, which includes asset allocation guidelines.

  As of June 30, 2021, the following is a breakdown of asset allocations.

  • US Equities 40%
  • Non-US Equities 13%
  • Private Equity 11%
  • Hedge Funds 14%
  • Commodities 2%
  • Natural Resource Equities 3%
  • Public Real Estate 2%
  • Private Real Assets 2%
  • Fixed Income 8%
  • Cash 5%
• Investment Performance

  The annual NACUBO-TIAA Study of Endowments analyzes return data and a broad range of related information gathered from U.S. colleges and universities, both public and private, as well as their supporting foundations. The size and scope of the Study make it the most comprehensive annual report on the investment management and governance practices and policies of institutions of higher education institutions across the U.S.

  • CUF outperformed the All-Institution Average return for the 9th year in a row
  • FY21 investment return of 33.5% was 2.9% higher than the All-Institution Average of 30.6%
  • Top quartile returns for the 3-, 5-, and 10-year time periods against All Institutions
  • CUF ranked #141 in Endowment Market Value (out of 734 total U.S. and Canadian colleges and univeristies)

  Sample sizes for the 2021 Study – All Institutions: 720, $501 Million to $1 Billion: 76, Over $1 Billion: 136

  

  As of June 30, 2021, the following is a breakdown of average annual returns.

  • For Fiscal Year 21
    • CUF is 33.5%
    • All institutions is 30.6%
    • $501 Million to $1 Billion is 33.9%
    • Over $1 Billion is 37.3%
  • 3 Year
    • CUF is 13.5%
    • All institutions is 12.1%
    • $501 Million to $1 Billion is 12.6%
    • Over $1 Billion is 14.2%
  • 5 Year
    • CUF is 12.7%
    • All institutions is 11.4%
    • $501 Million to $1 Billion is 11.9%
    • Over $1 Billion is 13.0%
  • 10 Year
    • CUF is 9.3%
    • All institutions is 8.5%
    • $501 Million to $1 Billion is 8.6%
    • Over $1 Billion is 9.4%
• Endowment Payout and Impact

  The Clemson University Foundation Board of Directors approves an endowment payout policy, recommended by the Investment Committee. The Clemson University Foundation payout policy is based on a total return approach in order to maintain stable cash flows over an extended period of time, to protect endowment funds against inflation and to preserve and grow the purchasing power of the endowment. The Foundation’s payout policy is calculated by applying a payout rate to a moving average based on the prior twelve quarters’ market value as of June 30 of the prior year. CUF’s current annual policy payout rate is 4% of endowment market values averaged over a 12-quarter period, which is funded from investment returns, and payout begins once the endowment has grown to 108% of gift value.

  Once an endowment generates a payout, the funds are disbursed annually to the designated area as established in the fund agreement. Each area receiving payout funds are responsible for spending those funds and honoring the designated purpose.

  Growing our endowment is not about having a bigger number, it is about the impact the endowment payout, or spendable return, can have on the lives of students, the efficacy of the education that can be provided, the world changing research that can be accomplished and the economic impact our land-grant institution can have on our region and the world. The endowment payout has steadily grown over the past decade, as a result of an increasing number of donors joining in the Foundation’s mission of support to the university, as well as solid investment performance, providing a substantial increase in the funds provided annually to the university.

  

  The following is a breakdown of the endowment payments per fiscal year. In Fiscal Year 13, the endowment paid out $11.2 Million. In Fiscal Year 14, the endowment paid out $11.5 Million. In Fiscal Year 15, the endowment paid out $15.3 Million. In Fiscal Year 16, the endowment paid out $17.5 Million. In Fiscal Year 17, the endowment paid out $19.1 Million. In Fiscal Year 18, the endowment paid out $19.8 Million. In Fiscal Year 19, the endowment paid out $20.7 Million. In Fiscal Year 20, the endowment paid out $22.1 Million. In Fiscal Year 21, the endowment paid out $23.8 Million. In Fiscal Year 22, the endowment paid out $25.5 Million.

  

  In Fiscal Year 21, the following is a breakdown of the payout by donor purpose.

  • Student Aid 35%
  • Faculty Support 28%
  • Department and Program Enhancement 31%
  • Unrestricted 6%
• Endowment and Gift Fees

  An administrative management fee (currently an annual 1.25% of each endowment’s market value averaged over the same 12-quarter period noted above), supports fundraising costs related to securing endowment funds and other gifts in support of Clemson, and those related to the foundation’s investment management and oversight of funds and fund managers. Investment in the support of these functions enables continued expansion and growth of this critical financial resource to the University as evidenced by the year-over-year success of fundraising and endowment growth at Clemson. A one-time reinvestment fee (currently 5%) is assessed on all non-endowed, non-annual student support gifts.

• Endowment Giving

  Your gift to Clemson will help fund scholarships and fellowships, endowed chairs and professorships, and initiatives that make a Clemson education exceptional, build a knowledge-based economy and drive innovation.

  There are many ways you can support Clemson. Make your gift now or complete this contact request form or contact us at 864-656-2121.

  To view your Clemson University Foundation giving history (for this tax year or any other), register or log on to My Clemson Connections. Your information is password protected on our secure website:

  https://iamatiger.clemson.edu/giving-history

  If you would prefer to communicate about your giving history over the phone, call 864-656-7732.

• Who governs the Foundation?

  The Foundation is governed by a volunteer Board of Directors.

• What are South Carolina's legal requirements for endowments?

  In 2008, South Carolina enacted the Uniform Prudent Management of Institutional Funds Act (UPMIFA). (See Legislative History of South Carolina Management of Institutional Funds law: 1972 UMIFA, SC ST §34-6-10 through §34-6-80). This act rules for the investment of funds held by charitable institutions and the expenditure of funds donated as “endowments” to those institutions. These rules support two general principles: 1) that assets be invested prudently in diversified investments that seek growth as well as income, and 2) that appreciation of assets can prudently be spent for the purposes of any endowment fund held by a charitable institution.

• What is the Foundation's tax status?

  The Clemson University Foundation is a registered 501(c) (3) charitable organization. Your gift may qualify as a charitable tax deduction in accordance with IRS regulations for the calendar year that you make your gift. You will receive a gift acknowledgement for your files. Consult your tax professional for more information regarding tax deductibility.