submitted by cjohnson@augsburg.edu
At their fall meeting, the Board of Regents voted to implement a new Augsburg Fund Allocation policy as of November 1, 2024. Under this policy, Augsburg will allocate 5% of all restricted philanthropic gifts to the Augsburg Fund. In practice, this means that 95 cents on the dollar will go to accomplish the specific purpose of the gift. The remaining five cents will support the university as a whole.
It is important to note that this new policy will not apply to any gifts or pledges made before November 1, 2024. Additionally, Augsburg Fund Allocation will not be taken from distributions of existing endowed or restricted current-use funds, regardless of when the funds were established.
While it comprises a small percentage of any individual gift, this incremental allocation to the Augsburg Fund represents a significant investment in Augsburg’s future. Today, a majority of philanthropic gifts to Augsburg are directed toward a specific purpose, like a new scholarship or an athletic team. These activities typically require additional investments that are not funded by the gift itself—things like finance and business operations, fundraising, IT, and human resources. The Augsburg Fund allocation helps to offset these costs while supporting Augsburg’s long-term financial sustainability.
Under this policy, 100% of every gift will continue to benefit Augsburg and will be recognized in full as a charitable contribution for tax purposes. Donors can also continue to give directly to the Augsburg Fund, with no change in how those gifts are allocated. While this allocation practice is new for Augsburg, it mirrors similar policies in place at universities across the country.
Contact Amy Alkire, vice president for institutional advancement, with any questions. Amy can be emailed at alkirea@augsburg.edu or contacted by phone at 651-323-4844.
Learn more about the Augsburg Fund Allocation.