Seven Million Dollar Gift!

ssckelley

Well-Known Member
Former Hawkeye basketball player Dr Sue Beckwith just gave a huge gift to endow the Hawkeyes’ head coaching position. I just read the article and thought I would share.

 

ssckelley

Well-Known Member
I'm not sure how endowments work, does that cover Bluder's entire salary? I think Bluder makes almost a million per year.
 

Will C

Active Member
It will probably not cover the entire salary. Typically, the earnings from investing the gift can be used to pay whatever part of the salary they will. Hopefully, others will see this and be motivated to add to the endowment. And hopefully whatever money is freed up in the athletic dept will be used for women's basketball.
 

ssckelley

Well-Known Member
It will probably not cover the entire salary. Typically, the earnings from investing the gift can be used to pay whatever part of the salary they will. Hopefully, others will see this and be motivated to add to the endowment. And hopefully whatever money is freed up in the athletic dept will be used for women's basketball.
Right, I'm guessing the return on the endowment will cover about 1/3rd of the salary which is a huge chunk. But I'm no expert on this topic.
 

MattinColumbus

Well-Known Member
Right, I'm guessing the return on the endowment will cover about 1/3rd of the salary which is a huge chunk. But I'm no expert on this topic.
Yeah, if they invest the $7 million in conservative stocks/bonds, they can probably get 5% or so annually, so around $350k. I’m sure there are terms in the endowment on how the money will be invested and what classes of assets/risk they’re willing to take on.
 
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