Table of contents
- Board of Regents adopt a new spending policy
- How the 20-quarter rolling average supports stability
- Frequently asked questions about the Consolidated Endowment Fund
- Frequently asked questions about investment
- Frequently asked questions about endowment gifts
- Contact us
NEW! Board of Regents adopt a new spending policy
A stronger future for students, research and programs
The University of Washington Board of Regents approved a change to the University’s Consolidated Endowment Fund (CEF) spending policy effective July 1, 2026. This update will allow for greater support of the UW’s mission while continuing to safeguard the long-term health of the endowment pool.
What’s changing?
The total endowment spending rate will increase from 4.5% to 4.75%. This change will be reflected in two key ways:
- Increased support for campus programs
The programmatic spending rate will change from 3.6% to 4.0%, resulting in an increase in campus distributions. This means more funding will be available for student scholarships, faculty excellence, research and academic programs in line with each fund’s purpose. - Reduced administrative fee
The administrative fee, which is included in the overall spending rate, will decrease from 0.90% to 0.75%, ensuring more of each endowment return goes directly to its intended purpose. The reduced fee will continue to support University-wide fundraising, stewardship activities and the costs of managing the endowment.
Why now?
- Rising costs, growing needs
As the cost of education and research continues to rise, this change ensures that endowments remain a reliable source of support for the University’s top priorities. - Strong investment performance
The CEF has performed well, enabling the University to responsibly increase distributions without compromising future stability. - Peer alignment
This adjustment brings the UW into closer alignment with peer institutions that operate with similar campus distribution rates.
What does this mean for donors?
- Greater impact
Your endowment will provide more annual support to the programs you care about. - Continued stewardship
The UW is committed to honoring donor intent and managing the endowment with care, transparency and long-term vision. - Annual updates
Each November, you will receive a personalized report with updates on your endowment’s performance and impact — including how this policy change is reflected in your fund(s).
Why does this matter?
Our approach helps the UW provide reliable support today while protecting the future impact of endowments. It reflects a commitment to thoughtful stewardship and honoring donor intent across generations.
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How the 20-quarter rolling average supports stability
Endowments at the University of Washington are built to provide lasting support for students, faculty, research and programs. To keep distributions steady year to year, the UW uses a 20-quarter rolling average of market value per unit/share to calculate spending. This helps smooth out market ups and downs and ensures consistent support over time.
Two ways to think about spending
- Simple spending calculation
Some may think of spending as the policy rate (4% effective July 1, 2026) multiplied by the current market value. It’s easy to understand, but if we used this type of calculation, it would lead to big swings in distributions when markets fluctuate. - UW’s policy-based calculation
Instead, the UW applies the policy rate to the average market value over the past 20 quarters. This creates a more stable and predictable spending base, helping preserve long-term value while still supporting current needs.
How the rolling average influences distributions
The effective payout rate — the percentage of the current market value that’s distributed — depends on how the current value compares to the average:
- If the current value is higher than the average, the effective rate will be lower than the policy rate.
- If the current value is lower, the effective rate will be higher.
Example 1: When the 20-quarter average is lower than the current value
Let’s say an endowment’s current market value is $1 million, but its 20-quarter average is $950,000. The annual distribution formula would be $950,000 × 4% = $36,000.
In this case, the distribution equals 3.8% of the current market value — not the full 4%. Here, the current value is higher than the average, so the distribution is slightly lower than what a simple calculation would suggest.
Example 2: When the 20-quarter average is higher than the current value
Now imagine an endowment’s current market value is $950,000, but the 20-quarter average is $1 million. The annual distribution formula would be $1 million × 4% = $40,000.
In this case, the current value is lower than the average, resulting in a higher distribution. Here, the distribution equals 4.2% of the current market value, which is slightly more than 4%.
Frequently asked questions about the Consolidated Endowment fund
An endowment is a permanent fund created with private donations to support specific programs and purposes designated by the donor. The assets are invested, and a portion of the fund’s value is distributed quarterly to support its intended purpose. Earnings beyond the annual distribution are reinvested to grow the fund’s market value, ensuring support for generations to come.
The Consolidated Endowment Fund (CEF) is the pooled investment vehicle for the UW’s endowments. It is governed by policies set by the Board of Regents.
Frequently asked questions about investment
Endowed funds are pooled and invested collectively in the University of Washington’s CEF— similar to how a mutual fund works. Each gift to an endowed fund purchases units in the CEF. As the market value of the CEF changes, so does the value of each unit, which in turn affects the value of each individual endowed fund.
The University of Washington Investment Management Company (UWINCO) manages all investment assets, including the endowment. UWINCO operates independently within the University and focuses on balancing long-term growth with the preservation of donor contributions.
The endowment portfolio is guided by a core objective: to provide sustainable support for endowed programs in perpetuity. The Board of Regents, in collaboration with the UWINCO Board, sets and reviews the asset allocation strategy annually to ensure it aligns with the University’s long-term goals and market conditions.
Our long-term strategy emphasizes an equity-oriented portfolio, while maintaining sufficient liquidity to meet the CEF’s funding needs.
For fiscal year 2026, the total spending rate is 4.5%, which includes:
- 3.6% distribution to support programs
- 0.9% administrative fee
The annual CEF report includes gifts invested during the fiscal year, which runs from April 1–March 31. Gifts received between April 1 and June 30 are invested on October 1, the first quarter of the new fiscal year, and will therefore appear in next year’s report, not the current one.
Units are purchased quarterly — on January 1, April 1, July 1 and October 1 — for gifts received during the preceding quarter. These units are purchased at the CEF unit value calculated by UWINCO.
New gifts added to the principal increase the amount distributed to support the fund’s purpose in future quarters.
The UW Treasury Office and University Advancement publish an annual web report detailing the CEF’s investment performance and its impact on University programs.
Frequently asked questions about endowment gifts
You can give online via My UW Giving or by mailing a check with the fund name and any specific instructions to:
UW Office of Gift Services
Box 359505
Seattle, WA 98195
If you’re giving through a donor advised fund or another method, please include a note with the fund name and indicate if the gift should be directed to the endowment’s spendable account.
Contact us
Contact Robert Bradshaw in the UW Treasury Office at robertcb@uw.edu or 206-221-6752.
Your individual endowment report includes contact information for the advancement officer in the benefiting area. They can answer questions about the impact of your gift.
You may also reach out to the Office of Endowment and Donor Services at steward@uw.edu or 1-800-332-0565 for assistance.
