Endowment Report FAQ
Thank you for your support of UNCSA! It was our pleasure to share with you the endowment
and scholarship reports for the funds you support at our university.
Here are some answers to some frequently asked questions about our reports.
What years does this report reflect?
The Foundation Financial Report (trifold brochure) you received covers all UNCSA Foundation
and UNCSA Fundraising figures for the 2024-25 fiscal year, which began July 1, 2024
and ended June 30, 2025. If you are a scholarship contact, you also received a list
of recipients for that scholarship for the 2025-26 academic year. If you are the contact
for an individual endowment fund, you received an endowment report specific to that
fund. If you are the contact for multiple endowed funds, you would have a separate
report for each fund. If you think your set of reports was incomplete, reach out to
the gift officer you are currently working with, or contact our Donor Relations team
using the information listed below.
What is the UNCSA Foundation, Inc.?
Established in 1964, the UNCSA Foundation is a sole-support entity dedicated to the
advancement and achievement of the students, faculty and staff of University of North
Carolina School of the Arts. The UNCSA Foundation oversees management of funds belonging
to the Foundation and prudently applies amounts derived from such funds to support
of the School. The Foundation advocates for UNCSA and encourages financial support
of the school. The Foundation provides clear and accurate financial information, while
operating openly and collaboratively.
What is an endowment?
An endowment is a fund created by donors to provide ongoing financial support for
a non-profit organization, where the principal gift is invested and the income generated
is used for specific purposes. The principal is typically preserved, allowing the
fund to generate a perpetual source of income for the organization. In the case of
the UNCSA Foundation, Inc., the organization receiving that income is UNCSA.
What is the "Administrative Expense" line item I see in the "University Support and
Expenses" section of the Foundation Financial Report?
The administrative expense covers staffing and expenses for the UNCSA Foundation,
Inc. That includes multiple employees of the Foundation who are paid through endowment
income rather than state funds.
The letter from the UNCSA Foundation Board President says the university raised $16.7
million in the 2024-25 fiscal year, but the listed "total contributions" are $9.6
million. Why the difference?
The number stated by the Foundation Board president includes estate gifts that have
been promised, but are not yet realized. These gifts are counted as a part of a university's
total fundraising for the year, but are not counted as "contributions" because the
funds will be paid sometime in the future.
What is a "Change in Split Interest Obligations"?
This refers to modifications in the financial and legal commitments of a split interest
trusts (trust where both charitable and non-charitable beneficiaries have an interest
in the trust's assets) such as a charitable remainder trusts (CRTs) or charitable lead trusts (CLTs). These changes can stem from the fluctuating value of trust assets, shifts in interest
rates (especially the Applicable Federal Rate and the 7520 rate), or changes in the trust's assets, like additional contributions
or sales.
Why does my individual endowment report only show distributions back to the 2015 fiscal
year?
In 2015, the Foundation adopted a new method for calculating endowment distributions.
For the sake of consistency and brevity, the chart reflects distributions from that
year forward (or, for funds established after 2015, from the year in which they first
distributed income).
What are "outstanding pledges" on my individual endowment report?
These are pledges (funds promised to the university by a donor) that have not yet
been fulfilled. If you have questions about pledges listed on your endowment report,
please reach out to us using the contact information listed below.
What are the "brokerage fees" listed on my individual endowment report?
These are fees charged by the UNC Management Company (UNCMC), a nonprofit organization that provides investment management services to the University
of North Carolina System, its constituent institutions and their affiliated endowments
and foundations.
Have another question about your report that isn't covered here? Contact our Donor
Relations Manager, Tim Young, at youngt@uncsa.edu or our Donor Relations Coordinator, Amber Copley, at copleya@uncsa.edu.
Thanks again for being a part of the community of UNCSA donors, and for fueling artistry
through your support!
