Doesn't tuition cover the cost of an AUB education?No. At AUB, as at other academic institutions, tuition covers only a portion of the full cost of a student’s education. Gifts to AUB play a very important role in making up the difference between the income the University receives from tuition fees and the expense of providing an AUB education.
What is the difference between annual giving and endowed (or capital) giving?Annual gifts are spent during the year in which they are made to pay for current expenses. Endowed (also called “capital”) gifts are invested. The University spends only a portion of the money that the endowment earns and not the endowment itself. Because the gift itself is not spent, it is available to earn income in perpetuity.
What is the difference between an annual scholarship and an endowed scholarship? Donors may establish an annual named scholarship with a minimum gift of $5,000. This annual named scholarship will exist and be spent only in the year in which it is established.
To establish a permanently endowed named scholarship requires a gift of at least $100,000. The amount of the gift is invested. Income from the endowed fund is distributed on an annual basis to support scholarships according to the terms of the endowed fund. The endowed named scholarship fund will last in perpetuity.
What is the Annual Fund?Gifts to the Annual Fund provide unrestricted funding for current expenses at the University and its Medical Center. AUB’s Annual Funds (Alumni Fund, Faculty and Staff Fund, Parents Fund, or Friends Fund) are the most important source of unrestricted support for the University.
What is an unrestricted gift—and why is it so valuable to AUB?When you make an unrestricted gift, you are leaving it up to the University to allocate funds where the need is greatest. This flexibility enables AUB to meet unexpected challenges and take advantage of unique opportunities. Your unrestricted gift to one of AUB’s annual funds supports financial aid, the AUB Medical Center, libraries and facilities, teaching, and research.
Is it worth making a gift even if I can’t afford to donate very much? Yes. Each gift of any size is appreciated – and makes a difference. Even a small increase in the percentage of people who donate to AUB can help the University secure additional gifts. Many potential funders, for example, consider whether an institution is broadly supported by its alumni, trustees, parents, faculty, and staff when deciding whether or not to make a gift.
Can I pay my gift in installments?Yes.
Is my gift tax deductible in the United States and Canada?Yes, to the extent allowable by law.
What is an endowed fund?An endowed fund is money that is given to AUB to be invested in perpetuity. An endowed fund can be unrestricted, providing a resource that can be used to meet current university expenses or it can be restricted for specific purposes such as financial aid, PhD programs; equipment for the Medical Center or laboratory; to establish a faculty chair; and/or to name an office, laboratory, or building.
Only a portion of the money that the endowed fund earns is spent according to the University’s spending policy. Money that the endowed fund earns that is not spent is reinvested. This enables the endowment to provide both immediate funding and long-term financial security for AUB.
What is AUB’s spending policy?AUB’s spending policy is to annually disburse 4 percent of the moving average market value of its portfolio [endowment] over 20 quarters. We expect that the money that is invested will earn more than 4 percent a year and so the size of the endowment would be expected to grow over time, thus ensuring that more money will be available to support the specific purpose of the endowed fund in the future.
Why would I as a donor want to establish or contribute to an endowed fund?Donors who decide to contribute to or to establish an endowed fund do so because they want to make a gift that will benefit AUB not just today, but for generations to come as well. Many donors who are able to do so also choose to establish a named endowed fund because they want to honor a particular individual in a way that ensures that their name will be permanently associated with AUB.
I can’t afford to make a gift—at least not now. Is there some other way that I can support AUB?Yes. Many alumni and friends provide invaluable assistance to the University by volunteering their time in support of one of the AUB volunteer groups and the dozens of WAAAUB alumni chapters and branches around the world. Contact us at 212-583-7662 in New York and +961-1-738009 in Beirut or by email at firstname.lastname@example.org if you would like more information about volunteering at AUB.