UNT Foundation FAQ

The UNT Foundation is a private, 501(c)(3) charitable organization with its own Board of Directors and employees. It is not a state agency and does not receive funding from the university or system. This independent structure, common among public universities, enhances effectiveness and benefits both the university and its donors.

State budget constraints make private support essential to UNT’s success. As state funding decreases, tuition costs may rise, increasing financial pressure on students and families. Private philanthropy helps UNT remain affordable while also providing the resources needed to excel as a Tier 1 Research Institution.

An endowment is one of the most impactful gifts you can create for UNT. When you establish an endowment, the UNT Foundation invests your gift —alongside many others— in its investment pool. The principal gift (or corpus) remains intact while generating a stable, annual return that supports the purpose you designate.

Through careful portfolio management and an annual payout rate, endowments provide sustained funding, ensuring long-term support for UNT students, faculty and programs — regardless of market fluctuations.

Both endowments and current-use gifts play a crucial role in supporting UNT. The best option depends on your philanthropic goals:

• Current-use gifts are spent immediately to address pressing needs.
• Endowment gifts generate ongoing financial support, ensuring long-term impact while growing to preserve purchasing power over time.

• Endowed scholarships are invested in the UNT Foundation’s portfolio, providing annual funding for students in perpetuity. With a set payout rate and a diversified portfolio, endowed scholarships ensure stable support, regardless of market conditions.
• Pass-through scholarships are one-time gifts that provide immediate financial aid and are distributed through the Division of Advancement.

UNT Foundation manages several types of endowments:

1. Permanent Endowments – Last in perpetuity; the principal is never spent, and distributions come from investment returns.
2. Term Endowments – Provide funding for time-sensitive projects and must be spent within a specified period.
3. Quasi-Endowments – Function like permanent endowments, but the principal can be accessed under certain conditions.

Yes! Donors can direct gifts to a particular cause, such as an endowed scholarship for a specific major or program. For gifts of $30,000 or more, the UNT Foundation drafts a gift agreement outlining the purpose, schedule and administration of your gift.

Absolutely! Donors can name their endowments in honor or memory of an individual, class or organization. Endowed gifts can support scholarships, faculty positions, research or university programs. Endowed general scholarships begin at $30,000.

1. Gift Agreement – For gifts of $30,000+, a formal agreement defines the gift’s purpose, form and administration.
2. Convert to Cash – Non-cash gifts (e.g., securities, real estate) undergo special processing and the foundation converts these gifts to cash.
3. Deposit in Account – Gifts are deposited into an endowed account per the donor’s intent. Once the account reaches $5,000, funds are invested in the endowment pool.
4. Gift Receipt – Donors receive a tax-deductible receipt.
5. Disbursement – Once an endowment reaches $30,000, it begins distributing funds. Distributions are calculated at 3.75% of a 12-quarter rolling average, ensuring stable support.
6. Future Additions – Donors can make additional contributions at any time.

Scholarship gifts can be made using:

• Cash
• Securities (stocks, bonds, mutual funds)
• Real estate
• Other real property

Endowed gifts can be paid over five years and are tax-deductible as allowed by law.

The market is volatile, and the UNT Foundation mitigates risk through a diversified investment portfolio. If an endowment’s principal falls below its original value (an "underwater endowment"), the Texas Uniform Prudent Management of Institutional Funds Act (TUPMIFA) allows a temporary reduction in distributions to help the corpus recover.

Each calendar year, donors receive an endowment report detailing investment performance, fund distributions and overall impact.

Students can apply for scholarships through the Eagle Scholarship Portal. Recipients are selected based on the criteria established in the donor’s gift agreement.