Sustainable Investing Inquiries and Process

Frequently Asked Questions

What is the University System of Maryland Foundation (USMF)? How does it differ from the University System of Maryland (USM)?

The University System of Maryland Foundation (USMF) was established in 1979 to accept private donations on behalf of what was then the ﬁve campuses of the University of Maryland. Over the years, its mission has expanded and changed, especially after the University System of Maryland was established in 1988. You can read more about the Foundation here and learn about our mission, vision, and values here.

A primary function of the USMF is investing approximately $2.4 billion in assets (FY25) to beneﬁt most of USM’s campuses, as well as several Maryland community college foundations. Most of these funds are endowed – meaning that they are invested over the long-term and the income funds student scholarships and other aid, faculty support, and other programs in perpetuity. The USMF also runs a variety of programs to help grow philanthropy across all of USM institutions.

The USMF is affiliated with, but separate from, the USM. The USMF is a private non-proﬁt 501(c)(3), governed by its own board of directors. These volunteers are elected by the board on the basis of their connection with USM institutions, their volunteer and civic engagement, and the expertise they can contribute to our Board. The USM is governed by the Board of Regents; these leaders are primarily appointed by the Governor.

Where does the money that the USMF invests come from?

The vast majority of assets under USMF’s management come from donors who generously provide critical support to USM’s institutions. There is another portion of funds which the USM has designated to invest with the Foundation to generate resources which support building philanthropy programs across the USM and to support capital projects as well.

USMF also provides investment management services to several Maryland community college foundations.

The USMF does not invest tuition dollars that students and their families pay to attend any of USM’s institutions.

Why did the USMF withdraw as a signatory to UNPRI?

In 2020, USMF’s Board voted to cease to be a signatory to the United Nations Principles for Responsible Investment (“PRI”). PRI is a voluntary stewardship code for investors, investment managers and investment service providers that provides a framework for incorporating ESG factors into investment ownership and management.

Soon after USMF became a signatory to the PRI in 2017, the PRI began implementing strict requirements for all signatories that were challenging to meet with the Foundation’s staff and resources. The USMF then learned that further mandates would be implemented in 2020, and that some planned reporting requirements would extend to the Foundation’s investment managers and would require signiﬁcant changes in the Foundation’s operating processes. Any signatory failing to make progress toward meeting these minimum requirements after a two-year period would be delisted by PRI. Alternatively, signatories were given the option to voluntarily delist.

The PRI’s increasingly strict standards and reporting obligations required USMF and its Board to think more strategically about how to continue incorporating sustainable investing considerations while balancing its ﬁduciary responsibility. USMF will continue this work through its own internal processes and procedures.

Very few U.S. higher education institutions and affiliated institutional foundations are currently PRI signatories. Northwestern and the University of Minnesota are the only Big Ten signatories to the PRI and only a handful of other U.S. universities appear to be signatories.

How will the USMF respond to inquiries about divestment or its holdings?

The USMF’s Board recently approved a process to respond to inquiries about divestment and other matters related to sustainable investing. A subcommittee of the Board (the Sustainability Subcommittee) will be charged with considering these requests and issuing a recommendation to the Investment Committee. This process can be found HERE.

Deadlines for submitting a request in 2025 are March 24 and September 25.

Once the USMF makes a decision about a divestment or other request, how will it communicate that decision?

The USMF will communicate with both the President and the SGA of the campus making the inquiry within 10 business days of the Investment Committee meeting at which an inquiry is being considered. If the Sustainability Sub-Committee does not forward a request to the Investment Committee, an update will be provided in a timely fashion. We expect that all inquiries will be addressed at least once a semester.

Why will the USMF only work through campus SGAs, the USMSC, faculty or staff governance entities, or the President’s or Chancellor’s Office?

The USMF’s process states the following:

The USM Foundation will consider inquiries regarding sustainability issues from universities for which it manages endowment assets when these inquiries originate from an official governance entity of the university (e.g., faculty senate, student government association) or from the President’s Office.

The USMF works in close partnership with the campus for which it invests funds. For that reason, we want to ensure that any concerns raised about our investments are broadly shared by the campus community and align with the viewpoints and decisions made at the leadership level. Campus SGAs already have procedures in place to hear student concerns and to pass resolutions that reﬂect a consensus on campus, as do other governance entities. Likewise, the President’s Office can turn to governance processes to consider any concerns raised about investment practices.

Why won’t USMF disclose where it invests or who its managers are?

This information is proprietary to the USM Foundation. In addition, the Foundation must sign conﬁdentiality agreements with many of its managers and revealing their identities would be in violation of those agreements.

Sustainable Investing Inquiries and Process

Before contacting us at USMFinquiries@usmd.edu, please click here to download the USMF’s Process for Inquiries Relating to Sustainable Investing and read through the FAQ below.

Frequently Asked Questions