Gifts and Endowment Support
Over the past decade, philanthropic support has grown significantly in importance to the University. Funding received from private sources — through gifts and endowment income — now exceeds the state appropriation for the Academic Division. Private philanthropy includes annual gifts from alumni, parents, and friends; realized bequests and other planned gifts; contributions for building and renovation projects; and gifts to endowed funds, including those held by the University and those held on behalf of the University by related foundations.
Donors have designated roughly 70 percent of the income generated by the University's core endowment for specific purposes, such as scholarships and professorships, with the remaining 30 percent left for use by the University to meet pressing needs as they arise. The University of Virginia Investment Management Company (UVIMCO), a foundation affiliated with the University, manages the Long Term Investment Pool, which holds the majority of the University's core endowment, its long-term operating funds, and the funds of related foundations. On June 30, 2012, the total value of the University's Long Term Investment Pool was $5.4 billion, with the University's core endowment making up $3.4 billion of that amount, and University operating funds and funds of affiliated organizations making up the remaining $2.0 billion.
Through active management, UVIMCO achieved a 5.1 percent for the twelve-month period ending June 30, 2012, while the Long Term Investment Pool's performance benchmark—comprised of 60 percent equity, 10 percent real estate, and 30 percent fixed income—lost 0.4 percent over the same period.
For the twenty-year period ended June 30, 2012, the Long Term Investment Pool recorded an annualized return of 12.1 percent, exceeding the 7.5 percent return earned by UVIMCO's performance benchmark and the University's spending rate—4 percent to 6 percent of the endowment's market value—plus the 2.5 percent average rate of inflation. Through effective asset allocation and exemplary manager selection, the pool continues to enhance the impact of private support for the University of Virginia and its related foundations.
2012–13 Gifts and Endowment Support*
All University Divisions $269.7 Million
Academic Division $267.2 Million
*To be expended for operating purposes