ENDOWED FUNDS: Gifts accepted subject to the requirement that the principal be maintained and invested to create a stream of income. Endowed funds are intended to exist in perpetuity. Only a portion of the earnings are expended to benefit the program or activity designated by the donor.  

HISTORIC GIFT VALUE: The sum of the original contributions that established an endowment fund, any subsequent donations to the fund, and any accumulations made as a result of directions in the memorandum of understandings or other gift agreements that govern the administration of the fund.  

MARKET VALUE: Sum of all contributions plus realized and unrealized earnings less distributions, fees, and assessments at a particular moment in time; typically tracked based on the last business day of the quarter. 

SPENDABLE INCOME: Funds made available from accumulated investment earnings to be used for the specific purpose designated by the donor.  

ABOVE-WATER FUNDS: Funds where the market value exceeds the historic gift value by at least the calculated spendable income and fees. 

AT-RISK FUNDS: Funds where the difference between the market value and historic gift value is less than the calculated spendable income and fees. 

UNDERWATER FUNDS: Funds where the market value is less than the historic gift value. 

UPMIFA: Uniform Prudent Management of Institutional Funds Act, passed by the Maryland General Assembly in April 2009. These are the statutes under which endowed funds are invested in the state of Maryland. 

UMB: University of Maryland, Baltimore  

UMBF: University of Maryland Baltimore Foundation, Inc. 

USM: University System of Maryland 

USMF: University System of Maryland Foundation 

COMMON TRUST: Common Trust of the University System of Maryland