Virginia Tech Foundation
  • Endowment Accounting

    • Gifts and other additions for endowments are assigned units in the consolidated endowment pool based upon the market value at the date of investment. The market value of units is calculated quarterly and includes both realized and unrealized gains/losses.

      EXAMPLE:

      Market Value of a unit 9/30/XX: $35.00
      A gift received for endowment during September: $250,000
      Endowment book value 9/30/XX: $250,000
      Units purchased ($250,000/$35.00): 7,142.86

      In the above example, number of units belonging to that fund would remain constant at 7,142.86 units, unless other additions or severances are made to the principal of the fund. Over time, however, as the market value of the assets in the endowment portfolio increase the value of each unit changes, causing the market value to change as well.

      EXAMPLE:

      Market Value of a unit 12/31/XX: $36.00
      Endowment book corpus value 12/31/XX: $250,000 (shown as Banner account 6628)
      Endowment book value realized gains/losses and fees 12/31/XX: (shown as Banner account 6632)
      Endowment unrealized appreciation 12/31/XX: (shown as Banner account 6633)
      Market value of units (7,142.86 x $36.00): $257,142.96

      Realized and unrealized gains/losses, income returned to principal, and fees are posted to the endowment fund quarterly under the account numbers above. Realized appreciation will result from actual sales of securities by the Foundation´s investment managers. Unrealized appreciation is simply a reflection of the market value as of the end of the most recent calendar quarter.