(Doc. T04-083, Addendum to Doc. T96-135)

Gifts for Facility Construction and Maintenance

The Commonwealth of Massachusetts has generously committed to a multi-year program of matching private funds raised for endowments at the University of Massachusetts. The matching fund program has language that specifically encourages the matching of so called facility construction and maintenance funds. Clearly the legislature wanted to encourage fund raising to improve the infrastructure of the University of Massachusetts.

Two of the primary goals of the University of Massachusetts are to both increase our permanent endowment and to dedicate funds to the overall improvement of our buildings. Therefore the State match program is very helpful in meeting these goals.

  1. The original gift and match principle of any Public Higher Education Endowment Incentive program endowment may not be reduced.
  2. The University of Massachusetts and the University of Massachusetts Foundation will count private gifts for capital improvement as eligible for the State match.
  3. Campuses are urged to borrow equivalent amounts of such endowed capital funds from the University of Massachusetts Building Authority to accomplish the capital project envisioned by the gift.
  4. The University of Massachusetts Foundation spending rate will be adjusted for these capital endowments to allow an annual spending rate of up to 8.5% to be distributed back to the campus as long as any outstanding debt for the project is outstanding. When all debt has been liquidated that particular capital endowment will revert to the standard University of Massachusetts Foundation annual spending rate.
  5. Any additional appreciation accrued beyond the initial gift and match “the endowment” may be utilized by the University of Massachusetts Foundation to meet the 8.5% annual spending rate goal in order to meet obligations for the capital project completed as long as any outstanding debt payments for the project are outstanding.