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Restricted Trust funds (the remainder coming from gifts, grants and contracts -- see Chart 7), income from Unrestricted Endowment funds is small in relation to the total funds supplied for General Unrestricted Trust fund purposes (Chart 8).  Total Endowment funds of the Institution are small in relation to total annual Institutional expenditures (Chart 9).

Income received from these Endowment funds currently is only a fraction of the Institution's total expenditures. Even if the Institution achieves its goal of $50 million of Unrestricted Purpose Endowment funds, the income would still be quite low in relation to our requirements, even for Trust fund purposes alone.

The Chancellor mentioned that in the past there had been a lack of understanding about our nonappropriated funds, the Smithson trust. In addition there have been questions concerning the need for an increase in the endowment funds.  The Chancellor stated that he feels very strongly that the Endowment fund should be built up and conserved as much as possible.  It is important that our policy be geared to the development of that fund which is dedicated to public use under the original act accepting the Smithson gift.

Transcription Notes:
Corrected minor typos; ready for review.