THE Alumni Association of the University of Michigan has sponsored two funds, one of which has been utilized for the support of the Association and the other, in theory at least, for the general welfare of the University (see also Williams professorship fund, in Part II: Alumni Association ).
The first is the endowment fund of the Alumni Association, established at the time of the reorganization of the Association in 1897. At that time a plan was inaugurated whereby the alumni who so desired might become life members of the Alumni Association and life subscribers to the Michigan Alumnus by the payment of $5.00 a year for seven years, or $35 in all. Of every five-dollar payment, $1.00 was reserved for the running expenses of the Association and the other $4.00, or $28 in all, was deposited in the permanent fund, only the interest of which could be used for Association purposes. Subsequently, in June, 1921, with the increased subscription price of the Alumnus, the individual memberships were increased to $60 on a basis of six annual payments or $50 if paid at one time.
At the time when this fund was put in force the finances of the Alumni Association were very low, and a certain number of immediate payments of $25 were solicited; the amount received was to be made available for the support of the Association. Within three years, or at the end of the general secretaryship of James H. Prentiss, who had first sponsored the plan, the total amount of this endowment was $4,526.30 in cash and $35,780.40 in life memberships pledged but not due. Through many years the endowment fund has grown, although in the period 1930-38 it suffered some losses, until in 1940 it amounted to a total of $68,698.32. It is now administered by the University officials who handle trust funds, but is kept as a separate account and is not included with the other University investments. Normally it returns some $2,000 to the Alumni Association each year.
The second fund, known as the alumni fund, is administered by a board of trustees, originally created on action of the Alumni Association but now a self-perpetuating, incorporated body. The fund now amounts to $7,271.27.