UI Foundation investment management

The Consolidated Investment Trust (CIT) utilizes a market-value-share method of operation (similar to a mutual fund).

• Individual endowments pool their cash for investment purposes only.
• Each endowment receives CIT unit participation shares when it transfers cash to the CIT.
• Gifts for endowments are subject to a one-time 5% gift assessment levied by the University of Idaho Foundation.
• All endowments are subject to investment management fees, currently set at 70 basis points (0.70%).
• The fair market value of a CIT unit participation share is determined monthly.
• During the period July 1, 1959, through June 30, 2024, the CIT has grown from 25 individual endowments owning unit participation shares with a market value of $441,460 to 1,882 endowments owning shares with a market value of more than $431 million.

Realized investment income (i.e., interest and dividends) and realized capital gains or losses from the sale of securities are accumulated until the end of each fiscal year and then are distributed in accordance with the terms of an endowment agreement that exists for each endowment.

• The calculation of the CIT’s realized income and capital gains/losses is made on a per-share (CIT unit participation share), pro-rata basis.
• Any earnings not distributed to the beneficiary scholarship or program are returned to the principal of each endowment and reinvested.
• Since July 1, 1959, the CIT has distributed over $268 million to University of Idaho scholarships, programs and life income beneficiaries.

Independent public accountants (Eide Bailly LLP) are retained to audit the CIT and render an opinion regarding compliance with generally accepted accounting principles and the fairness of the financial statements presented to reflect the CIT's financial position each year.

Cambridge Associates LLC, an independent investment fund evaluation firm, is retained to compute and evaluate the CIT’s investment performance. 

On Sept. 17, 1970, the University of Idaho Foundation was incorporated under the laws of the state of Idaho as a nonprofit organization exempt from federal tax under section 501(c)(3) of the internal revenue code. The UI Foundation’s sole purpose is to support University of Idaho by the means at its disposal with an emphasis on soliciting financial support for the university and managing and investing the securities, monies and real and personal property it receives from such sources, and to expend its resources, beyond that required to cover the costs of its operation, to and for the benefit of the university. The UI Foundation is governed by a board of directors and acts in accordance with the operating agreement with University of Idaho effective July 1, 2024.

The university is governed by the Board of Regents of the University of Idaho (Regents) and is a constitutional corporation organized and existing under and by virtue of the constitution of the state of Idaho. The university is exempt from federal income tax under section 501(c)(3) of the internal revenue code, as an educational organization. The Regents, under the terms stipulated in University of Idaho/Foundation Agreement dated June 24, 1993, appointed the Foundation as an agent of the university.

The Consolidated Investment Trust (CIT) was established by the Regents in July 1959, when the assets of 25 individual endowments having a combined market value of $441,460 were pooled for investment purposes only and, in return, were issued unit participation shares in an investment account called the CIT. The purpose for creating the CIT was to provide a well-managed, diversified investment vehicle owned entirely by endowments which benefit University of Idaho.

Upon accepting the CIT in 1975, the University of Idaho Foundation board of directors created an investment committee and charged it with the responsibility of monitoring and guiding the CIT’s investment policy. This committee meets regularly with the Foundation’s investment consultant (currently Cambridge Associates) to review investment activity, performance and compliance with established investment parameters. The committee reports directly to the U of I Foundation board of directors. 

The Consolidated Investment Trust (CIT) is a pooled endowment fund managed by the University of Idaho Foundation, for the benefit of University of Idaho. Scholarships, faculty chairs and professorships, research, performing arts, lectureships and many other programs of the university are supported by the CIT’s endowment earnings. As of June 30, 2024, the market value of the CIT portfolio of marketable securities was more than $432 million and was compromised of 1,882 individual endowments. 

• Invest to maximize long term total return, ensure safety of principal and provide satisfactory current income (Regents, June 12, 1975)
• Provide regular and reliable source of funding
• Long term returns 5% above inflation
• Rank in the top 40% of comparable funds

The CIT was established by the Regents of the University of Idaho in July 1959 (11 years before the creation of the UI Foundation, in 1970). 

• The CIT historically distributed the actual realized income (dividends and interest earned) and reinvested all realized capital gains as endowment principal.
• As of fiscal year 2014, the UI Foundation distributes earnings that include capital gains on all its endowments given Bill 1314. This legislation modifies section 33-5004 of the Uniform Prudent Management of Institutional Funds Act to assist charities to prudently manage endowment funds through the interpretation of language in gift instruments (endowment agreements) related to preserving and spending endowment earnings.
• For fiscal year 2024 distribution, the board of directors approved the rate at 4.2% of the prior three-year rolling average fair market value of the invested fund balance, which will be distributed to beneficiary colleges and departments.
• All endowments are subject to investment management fees, currently set at 70 basis points (0.70%).
• Gifts for endowments are subject to a onetime 5% gift assessment.