Seven Million Dollar Gift!

[ssckelley]

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.

$7 Million Gift Endows Iowa Women’s Basketball Coaching Job

IOWA CITY, Iowa (AP) — Former Iowa basketball player Dr. P. Sue Beckwith has given $7 million to endow the Hawkeyes’ head coaching position, the athletic department announced Tuesday. Known as Sue …

who13.com

 

[Will C]

Kudos to Dr. Beckwith for this generous gift.

 

[ssckelley]

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]

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]

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]

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.