Purdue University

Giving to Purdue

University Development Office

Our Investment Principles

The goal of our investment policy is to ensure private gifts to Purdue are managed well, invested thoughtfully, and used for the purposes specified by donors.

For investment purposes, Purdue pools the individual endowment gifts into a single fund. This allows us to achieve greater diversity in our investments, lower our investment costs, and attain the maximum return on donor gifts.

Investment Objectives

  • Preservation of capital
  • Protection of capital from inflation
  • Enhancement of capital through market appreciation

With these objectives in mind, we invest the majority of endowment funds in equities and the remainder in bonds and alternative investments. This has resulted in steady growth of the Purdue Endowment.

The combined value of the University’s and affiliated foundations’ endowments exceeds $1.4 billion.

Spending Policy

Income — interest and dividends, less appropriate expenses, plus capital appreciation — is distributed semi-annually on June 30 and December 31. The amount of the distribution is 5 percent of the average ending market value of the total endowment for the prior 12 quarters. Using a 12-quarter average protects the amount that is distributed from short-term fluctuations in the market.


Two separate but allied foundations support Purdue financially:

  • Purdue Research Foundation (PRF)
  • Purdue Foundation

Purdue’s Board of Trustees and the PRF Board of Directors oversee the endowment investment policy.

An Internal Investment Committee manages the Purdue University Endowment funds and the endowments of the Purdue Research Foundation. This committee is made up of Purdue University’s executive vice president and treasurer (chairman), assistant treasurer, senior director of investments, and PRF’s senior vice president and treasurer.