Gift FAQs

On February 24, 1965, the Stony Brook Foundation Inc. was incorporated “to assist in advancing the welfare and development of the State University of New York at Stony Brook by accepting and encouraging gifts to this corporation and by using such gifts to advance such purposes in a manner consistent with the educational policies of the State University of New York.” The foundation bylaws state that a Board of Trustees shall “manage the property, affairs, business, and concerns of the Foundation.” 

Stony Brook Advancement and the Stony Brook Foundation work in close partnership to secure, manage and steward philanthropic support for Stony Brook University.

University Advancement builds meaningful relationships with alumni, friends, foundations and corporations to inspire private giving that benefits students, faculty, researchers and patients

The Stony Brook Foundation (SBF), a private 501(c)(3) nonprofit organization, manages, invests and stewards those philanthropic funds to advance the university's priorities and ensure donor intent is honored.

The state of New York provides less than 18 percent of the university’s annual operating budget. Private gifts allow the university to attract and retain the best and brightest faculty, provide scholarships, build first-class facilities and continue the quality education and research programs that are the hallmark of Stony Brook. 

The Stony Brook Foundation is a registered 501(c)(3) charitable organization. All gifts to the foundation are tax deductible to the fullest extent of the law. You should consult with your tax attorney/adviser concerning the deductibility of your gift. The foundation’s federal tax identification number is 11-6077945.

The university’s fundraising priorities are established by President Andrea Goldsmith, in consultation with her cabinet, deans and key faculty and staff, as well as in consultation with the foundation’s Board of Trustees. Fundraising priorities are aligned with the university’s needs and donor interests.

The goal of the Stony Brook Foundation is to maximize the value delivered to the university. By reducing administrative expenses wherever possible and optimizing organizational efficiencies, the foundation is able to make available to the university millions of dollars each year. Each gift received by the foundation — regardless of the purpose or amount — is carefully processed to ensure that the donor’s wishes are honored and that the university receives the maximum benefit.

Gifts (and grants) given to the Stony Brook Foundation for current use are immediately available to support the university according to the donor’s wishes. Current use gifts may be placed into an existing fund and commingled with other gifts that were made for the same purpose. Large current use gifts and grants made for specific purposes are typically placed into new (and separate) gift fund accounts. The Stony Brook Foundation charges a one-time 10 percent gift fee for current use funds. Endowed gifts are permanently invested, and the investment earnings are used to support the purpose of the gift in perpetuity. The invested principal is preserved for the future.

Each year, donors step forward to provide undergraduate scholarship and graduate fellowship support that helps to transform the lives of our students. Some scholarship and fellowship awards are based upon merit and reward academic performance, while others are based upon demonstrated financial need. Assistance can be designated for students within a specific college, school, department or major; for incoming freshmen or upper-division students; for students who are the first generation from their families to attend college; or for those who grew up in a certain city, town or state, or graduated from a particular high school.

Endowments, rather than current use funds, are often referred to as the “gifts that keep on giving” by offering donors the opportunity to support multiple generations of students and faculty, thereby providing a lasting personal legacy and impact on Stony Brook.

Endowment funds are permanently invested by the Stony Brook Foundation. In accordance with the donor’s wishes, as specified in their contractual gift agreement, a portion of the income generated by that investment is used for university programs such as undergraduate scholarships, graduate fellowships, faculty research, libraries, lectureships or other priorities.

Another portion of the endowment’s income is reinvested each year, enabling the endowment principal to maintain its “spending power” against inflation and continue to grow.

The Stony Brook Foundation endowment policy provides for an annual program distribution of 4.5 percent of a five-year rolling average of the endowment market value, depending upon market conditions. This rate is slightly higher than that of our peers: The median distribution for organizations with endowment assets of $100 million or higher is 4.43 percent.

The Stony Brook Foundation has set our endowment spending rule, based on historic market trends and inflation, so that the value of the endowment will grow in the future while also providing current-year operating funds for hundreds of areas across campus. Furthermore, our spending rule ensures that the endowment is protected and stabilized through strong and weak market conditions.

Yes, there are two types — restricted and unrestricted:

Restricted Endowments: Most endowments are restricted, which means the donor designates where the money can be spent. For instance, an endowment may support a faculty member’s research for a specified amount of time or provide scholarships for students in a particular school or program.
Unrestricted Endowments: Unrestricted endowment gifts are far less common in higher education, but they are incredibly valuable because unrestricted funds may be spent at the discretion of the university’s leadership so that they can seize new opportunities that may otherwise be out of reach.

At the close of the calendar year, December 2025, the Stony Brook Foundation endowment market value was an approximate $825 million.

Each restricted foundation fund has an underlying legally enforceable agreement with the donor that requires us to use the money as the donor has directed. The foundation has a fiduciary duty to allocate these resources according to donor intent.

While we have achieved significant fundraising gains in recent years, Stony Brook University — founded in 1957— is one of the youngest among the 71 institutions that are members of the Association of American Universities (AAU). Therefore, we’ve had only a fraction of the 100+ years most of our peer institutions have had to raise funds and build an endowment.

Private gifts allow the university to attract and retain the best and brightest faculty, provide scholarships, build state-of-the-art facilities and continue the quality education and research programs that are the hallmark of Stony Brook. New York state provides less than 18 percent of Stony Brook’s annual operating budget, making private support critical to our continued success.

If you have reviewed this website in its entirety and cannot find the information you need, please call us at (631) 632-4353. We will do our best to answer your questions in a thorough and timely manner.