At the University of Maryland, Baltimore, we remain steadfast in our mission to improve the human condition and serve the public good of Maryland and society at-large through education, research, clinical care, and service. Endowed funds are vital to ensure that we may continue to pursue this people-centered mission, now and in future generations.  

Philanthropic funds to benefit UMB are managed in one of three endowment pools — the University of Maryland Baltimore Foundation (UMBF), the Common Trust of the University System of Maryland (Common Trust), and the University System of Maryland Foundation (USMF). 

The UMBF Board of Trustees manages and sets the yearly spending rate for the majority of the funds that encompass the UMB endowment portfolio. Ever mindful of the need to balance current university requirements with the future needs of our students and faculty, the board’s oversight ensures that gifts are invested prudently and endowment proceeds are used according to the donor’s intended purpose.   

To maximize growth and broaden investment possibilities, UMBF pools its endowment with funds from the other University System of Maryland institutions by contracting with USMF for investment services. The investment committee at USMF establishes investment allocations, selects investment managers, and monitors results.  

Endowed funds that are not managed by UMBF are held by the Common Trust and USMF. Common Trust and USMF funds are part of the pooled endowment managed by the USMF Investment Committee.   

The primary investment objective is to generate returns sufficient to meet spending requirements while preserving the purchasing power of the endowment over time. To this end, the USMF Investment Committee manages endowment assets in accordance with the following principles that, regardless of cyclical ebb and flows in capital markets, ensure the long-term health and viability of the pool: 

Several factors determine the spending rate set for each endowment pool (UMBF, Common Trust, and USMF). Broad factors such as actual market returns, projected future returns, and inflation are considered, along with more fund-specific factors like the variance between market value and historic gift value and the length of time the individual funds have been in existence.   

 Spendable income calculations are based on the prior Dec. 31 market value of each fund. The results allow for full spending from funds that are above water and limited spending from funds classified as at-risk or underwater. This fiscal year, the total amount of spendable income is $19.6 million.