Frequently Asked Questions
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Who will be eligible to participate in Student Investment Fund?
Realizing that students from a variety of academic backgrounds have interest in investment fund management, students from all majors can participate in Student Investment Fund. Students must demonstrate a cursory knowledge of investment management and may be required to meet several course pre-requisites depending on each participant’s responsibilities.
This is real money in a real market. Is it possible that the students lose the entire corpus of the fund?
While an entire loss is a remote possibility, Student Investment Fund will be established as a fund to be managed for long-term growth and will not be exposed to aggressive day trading or concentrations in high-risk asset classes. The parameters of the funds investments will be firmly established within acceptable asset classes and reasonable risk tolerances that would limit downside risk but provide students with enough flexibility to fully manage the fund. The Advisory Board will have oversight responsibility and the mandate to manage the students and the fund in the best interests of the university.
Can a donor contribute stocks to Student Investment Fund and have them managed as part of the fund, rather than being immediately liquidated?
University policy states that all gifts in the form of securities must be liquidated. In many cases, there may be tax advantages for the donor liquidating securities and donating the proceeds. For example, if the securities in question have declined in value, the donor will receive a tax deduction for the realized loss if he/she liquidates the securities before they are donated. On the other hand, if the securities have unrealized capital gains, it is often better for the donor to donate the securities (rather than cash) to avoid being taxed on a realized capital gain.
What are the expectations for the size of the fund?
We have received the initial commitment of $20,000, so in essence the fund is operational. We expect student involvement to commence in the Fall of 2003. We envision it growing, through additional contributions (and commitments) and effective management, to $50,000, then $100,000 in the next several years. Ideally, the fund will grow to more than $1 million and give students a superb educational and philanthropic experience. Capping the fund is left to the discretion of the Advisory Board and university officials.
If I donate to the Annual Fund and want to contribute to Student Investment Fund, what should I do?
The University relies on strong and consistent donations to the Annual Fund to keep a balanced budget and aid students and faculty each year, so we encourage donors to continue Annual Fund giving as well as making restricted gifts to special project like Student Investment Fund. However, giving is a matter of personal preference, and if you’d like to direct your entire gift to Student Investment Fund, we’d be grateful to receive it.
Will my employer match gifts to Student Investment Fund?
It is likely that your (or your spouse's) employer will match your gifts to Student Investment Fund, however, each corporation's matching gift policy differs. Please consult your human resources or benefits office for information on doubling your gift to Student Investment Fund. The university relies on strong and consistent donations to the Annual Fund to keep a balanced budget and aid students and faculty each year, so we encourage donors to continue Annual Fund giving as well as making restricted gifts to special project like Student Investment Fund. However, giving is a matter of personal preference, and if you’d like to direct your entire gift to Student Investment Fund, we’d be grateful to receive it.