WSU Foundation's assets affected by economic downturn WSU Foundation's assets affected by economic downturn

The foundation's investment committee has engaged in substantial financial diversification, and in addition to the foundation staff, they continue to closely monitor market conditions. However, there is concern that it may be some time before strong performance returns the portfolio into positive territory.

Donors have been recently informed that the WSU Foundation board has approved a 20 percent reduction in payouts from endowed funds for the next academic year. For example, if a fund awarded $1,000 this year, the amount authorized for next year will be $800.

The 20 percent reduction amount was discussed with President Beggs and his administrative team prior to the board meeting. It was collectively determined that it is better to prepare for deeper cuts, and if market conditions rebound more quickly, then payouts will be adjusted accordingly. The only exception, supported by Beggs and the foundation board, will be to honor scholarships, which were made as four-year awards.

There are 88 funds most greatly affected, which were created over the past two years. For these funds, the board voted for a payout of interest and dividends only.

The foundation believes it is important to be extremely conservative in its approach in order to preserve the long-term value of the endowed funds, which were created with the intent of perpetuity.

The WSU Foundation's budget also is affected by the downturn in the market and staff members already have begun reducing costs.

For more information or for answers to your questions, please contact Patsy Selby, WSU Foundation vice president for finance, at 978-3810 or patsy.selby@wichita.edu.