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[[underline]]Proposed Increase in Endowment Funds[[/underline]]

Mr. Webb, the Secretary, and the Treasurer made the following report.

At the last Regents meeting it was suggested that the Institution should establish a goal of increasing substantially its unrestricted-purpose endowment funds--from the present $8,400,000 to perhaps $50 million or more over the next 10 years.  It is essential to an understanding of this proposal that only the income is normally considered to be expendable, not the corpus of the endowment.  Further information on this major subject is to be presented at this meeting.

[[underline]]Background[[/underline]] - Smithsonian's total Trust Fund income prior to 1950 rarely exceeded $500,000 annually, including income for both restricted and unrestricted purposes.  Federal appropriations, provided largely for the purpose of preserving, researching and exhibiting our national collections, regularly provided about 80% of total Institutional income--just as at the present time (see Table 1).  Trust Fund income gradually increased thereafter, reaching $1 million for the first time in FY 1960 and over $3,000,000 in FY 1970.  Beginning in 1956 the Institution also received increasing amounts of grants and contracts from Federal agencies to carry out scientific research projects; these reached a peak of nearly $16 million in 1967 with some decline thereafter.