Income Matching
Graduate Fellowships
Endowment funds received after January 1, 2003 for the purpose of establishing graduate fellowships are eligible for the match.
The full match, that is 1:1, will consist of a payout equal to 5 percent of the principal on an annual basis and will be available for gifts of at least $250,000. If the gift falls between $150,000 and $250,000, the match will be based on a ratio of 1:2. Payouts will be in perpetuity.
To take an example: Sarah Smith donates $200,000 to endow a graduate fellowship in the School of Journalism at IU Bloomington. Assume that the payment from the endowment is $10,000 per year (that is, 5 percent of $200,000, the current spending policy of the IU Foundation Board of Directors). The match is 1:2 on this principle amount ($200,000) in perpetuity. Thus, in addition to the $10,000, the School of Journalism receives an additional $5,000 per year for support of this fellowship.
The match opportunity will be in effect until the funds are fully committed. A maximum of $3,000,000 will be allocated for the Bloomington campus. The source of funds for the match will come exclusively from the University's base budget in perpetuity. The IU Foundation will not guarantee the match portion of the gift. Allocations will be made in accordance with an approved allocation plan.
A gift that qualifies for a 1:1 match may be distributed between more than one endowed fellowship program. For example, a $250,000 gift will qualify for the 1:1 match regardless of how the gift is distributed among qualified programs. It is the size of the gift that matters, not how it is distributed.
The IU Bloomington provost, in consultation with the University president and the IU Foundation president, reserves the authority to limit eligibility. In particular, it should not be possible for gifts that will be matched to deplete all matching monies. In order to determine the upper limit of a specific gift, a brief written proposal should be submitted to the IU Bloomington provost.
Any gift that is eligible for the match must be administered by the IU Foundation or IU and not by an outside trustee.
Responsibility for authorizing exceptions to this policy rests with the IU Bloomington provost, in consultation with the president of IU.
