What Is Packaging? – Definition, Types, & Functions

what is packaging

One cannot transport eggs from a poultry farm to the retailer without packing them in an egg tray as they might crack even before reaching the final consumer. Similarly, a white shirt might get stains if transported and sold without packaging, and a retailer might not be able to sell perishable milk products after a day if there were no Tetra Pak.

The paper, corrugated boxes, plastic films, polybags, and rollbags, etc., that enclose a product have a lot more value than a customer can imagine.

But what is packaging, why is it important, what are its types and functions?  

What Is Packaging?

Packaging is the act of enclosing or protecting the product using a container to aid its distribution, identification, storage, promotion, and usage.

According to Kotler –

Packing constitutes all the activities of designing and producing the container for a product.

In simple terms, packaging refers to designing and developing the wrapping material or container around a product that helps to

  • Identify and differentiate the product in the market,
  • Transport and distribute the product,
  • Store the product,
  • Promote the product,
  • Use the product properly.

Importance Of Packaging

Often considered as an essential marketing subset, packaging forms the core distribution, storage, and sales tool that can be a part of the product itself or an external container made of varied materials.

Packaging is an essential element both for the seller and the customer. While the seller use it as a tool to distribute, store, and promote; the customer uses it as an important identification and usage tool.

Importance Of Packaging For The Seller

  • Distribution: Good packaging makes it possible for the seller to transport the product from the manufacturing unit to the final selling point and then to the customer. The seller uses different packaging for the same – transport packaging to transport the products and consumer packaging to aid the consumer in consuming the product.
  • Storage: Warehousing comes with its own risks of product spoilage, spillage, and mishandling. Proper packaging helps the seller store and assort the products better.
  • Promotion: Packaging forms a vital marketing element that the brand uses to differentiate the product using attractive, colourful, and visually appealing packages and inform the buyer about the product’s performance, features, and benefits.
  • Safety: Good packaging aids in product safety before it reaches the final consumer. For example, a Tetra Pak prevents the milk from getting spoilt before its expiry date.

Importance Of Packaging For The Buyer

  • Identification: Packaging and labelling help the customers identify the product and differentiate it from other products in the market.
  • Usage: Often, packaging, like that of a toothpaste, that forms a part of the product aids in its usage and consumption.
  • Safety: It also protects the consumer from the dangers that the product comes with. For example, an acid bottle protects the user from getting acid burns.

Functions Of Packaging

Packaging plays a crucial role from the time a product is developed to the time a product is fully consumed. These functions of packaging include:

  • Contains the product: Most products need to be contained either during transportation, storage, or consumption. Packaging makes sure the product is contained as and when required.
  • Protects the product: Packaging protects the product and its quality, features, utility, etc. from being damaged or contaminated during transportation, storage, and consumption.
  • Aids product handling and usage: Proper packaging aids product handling and makes it easy to transport, ship, and even use the product.
  • Differentiates the product and makes it stand out: Packaging makes it easier for the customer to identify and differentiate it from other products. Moreover, attractive packages have a property to stand out and attract customers towards it.
  • Forms a part of product marketing strategy: An attractive and/or informative package makes the product stand out and have a promotional appeal. Packaging also acts as the final touchpoint that helps in product promotion and sale.
  • Provides customer convenience: Packaging is also a convenience tool that makes it convenient for the customer to carry, transport, and use the product.
  • Acts as a communication medium: Packaging along with labelling helps communicate the brand identity , brand message , and product and company information to the customer.
  • Adds to the aesthetic value: Packaging can make a simple product look attractive or a unique product look ordinary. It’s an important aesthetic touchpoint that can make or break a sale.

Types Of Packaging

Usually, packaging can be categorised into three types depending upon its usage and purpose. These types are:

Primary Packaging

cereal primary packaging

Primary packaging, also referred to as consumer packaging, is in direct contact with the product and is intended for the customer to identify, gain product knowledge, and to aid product consumption.

It’s the base packaging that emphasises both utility and appearance.

It is the primary layer like the plastic pouch, cardboard box, etc. containing the finished product, that protects and preserves the finished product from contamination and tampering, while including aesthetic elements that make the product stand out.

Besides aiding identification, differentiation, and consumption, primary packaging also acts as a promotional tool to attract more customers at the point of sale by making the product look more appealing.

Some examples of primary packaging are:

  • Laminated pouches for dry fruits
  • Plastic containers for fruits
  • Tin cans for soft drinks
  • Laminated tubes for beauty products
  • Composite cans for chips

Often, removing the primary packaging of a product affects the product’s quality or attribute.

Secondary Packaging

soda secondary packaging

Secondary packaging forms the second packaging layer that the customers don’t usually see. Its main use is to group and hold together individual units of the product to deliver large quantities of that product to the point of sale.

It collates smaller product units into a single pack and aids in inventory management (grouping and identification) before the product is showcased to the customer.

Some examples of secondary packaging are:

  • Plastic ring that holds soda cans together, and
  • Cardboard box containing multiple individual boxes of cereal, etc.

Removing secondary packaging doesn’t affect the product’s quality or attributes.

Tertiary Packaging

shipping container tertiary packaging

Tertiary packaging, also referred to as bulk or transit packaging, is used to group a large quantity of a particular product to transport it from point A to B.

The main objective of this packaging is to make it easier to transport heavy loads or large quantities of a product easily and securely, while facilitating easy storage and handling.

 Some examples of tertiary packaging are:

  • Wooden pallets used in freight shipping
  • A stretch-wrapped pallet containing a large quantity of secondary packaged goods.

Difference Between Packing And Packaging

While considered as same, packing and packaging are not something that one can use interchangeably. Packing is a subset of packaging that refers to wrapping up the product and containing it in a case or wrapper to protect it and aid in handling.

On the other hand, packaging is the process of designing and developing the container of the offering that protects it and helps customers identify and differentiate in the market.

In simple terms, packing just involves wrapping the product, while packaging also consists of the branding aspect.

Packaging Advantages

Packaging comes with its own set of advantages. These are:

  • It protects the product from any physical harm and damage.
  • It helps increasing sales as it adds to the aesthetic value of the product.
  • It keeps the product hygiene by preventing adulteration and hampering.
  • Some specialised packaging also prevents the products from going bad.

Packaging Disadvantages

While packaging forms an important element of a product, it comes with its own disadvantages. These are:

  • Packaging can be deceptive and may trick the customer into getting a wrong perception of the product.
  • It adds to the cost. Packaging can add to the cost of the product, which the customer eventually bears.
  • It adds to the waste that can turn hazardous, especially if it is plastic.

Go On, Tell Us What You Think!

Did we miss something?  Come on! Tell us what you think about our article on  packaging definition in the comments section.

Aashish Pahwa

A startup consultant, digital marketer, traveller, and philomath. Aashish has worked with over 20 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.

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Food Packaging Industry Technology Market Size

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eco friendly packaging a sustainable solution

Eco-Friendly Packaging A Sustainable Solution for a Greener Tomorrow

Sep 12, 2023

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In a world where environmental consciousness is more critical than ever, eco-friendly packaging emerges as a beacon of sustainability and responsible consumerism. Our commitment to a greener tomorrow drives us to offer a wide range of eco-friendly packaging solutions designed to minimize environmental impact while meeting your packaging needs.<br>For more details: https://themendpackaging.com/<br>

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Eco-Friendly Packaging: A Sustainable Solution for a Greener Tomorrow In today's world, where environmental consciousness is at an all-time high, eco-friendly packaging has emerged as a game-changer for businesses and consumers alike. As we become more aware of the impact of our choices on the environment, the demand for sustainable packaging solutions has skyrocketed. In this blog, we'll explore the concept of eco-friendly packaging, why it matters, and how it benefits both the planet and businesses. What is Eco-Friendly Packaging? Eco-friendly packaging, also known as sustainable or green packaging, is designed with the environment in mind. It focuses on reducing the negative environmental impact of traditional packaging materials and practices. The primary goal is to minimize waste, conserve resources, and promote sustainability throughout the product's life cycle, from production to disposal. Why Eco-Friendly Packaging Matters 1. Reduction in Waste Traditional packaging materials, such as single-use plastics and non-recyclable materials, contribute significantly to the global waste problem. Eco-friendly packaging aims to reduce waste by using materials that are biodegradable, recyclable, or compostable. 2. Conservation of Resources Eco-friendly packaging materials often come from renewable sources, such as bamboo, sugarcane, or recycled paper. This reduces the consumption of finite resources like petroleum-based plastics. 3. Lower Carbon Footprint The production and disposal of traditional packaging materials release greenhouse gases into the atmosphere, contributing to climate change. Eco-friendly packaging solutions typically have a lower carbon footprint, as they involve fewer emissions during production and decompose more quickly. 4. Consumer Preference Consumers are increasingly making purchasing decisions based on environmental considerations. Businesses that adopt eco-friendly packaging can attract environmentally conscious consumers, enhancing their brand image and marketability. Benefits for Businesses 1. Cost-Efficiency While the initial investment in eco-friendly packaging may be higher, businesses can often save money in the long run. Eco-friendly materials are often lighter, reducing shipping costs, and businesses can benefit from tax incentives and reduced waste disposal fees. 2. Competitive Advantage Companies that embrace sustainable practices gain a competitive edge. Eco-friendly packaging can set a business apart from its competitors and appeal to a broader customer base. 3. Compliance with Regulations

Many governments and regulatory bodies are implementing stricter environmental regulations. Adopting eco-friendly packaging ensures compliance with these regulations, avoiding fines and legal issues. Eco-Friendly Packaging Options There are several eco-friendly packaging options available for businesses to consider: 1. Recycled Materials Using recycled materials, such as paper, cardboard, or glass, is a common eco-friendly choice. These materials reduce the demand for virgin resources and promote recycling. 2. Biodegradable Plastics Biodegradable plastics break down more quickly in the environment, reducing their long-term impact. However, they should be disposed of properly to maximize their benefits. 3. Reusable Packaging Reusable packaging, such as jute bags or glass containers, encourages customers to reduce waste by using the same packaging multiple times. 4. Minimalist Design Simplifying packaging design by reducing excess layers or using minimal ink and dyes can reduce environmental impact. The Future of Eco-Friendly Packaging As consumers continue to prioritize sustainability and environmental responsibility, the future of eco-friendly packaging is promising. Businesses that invest in sustainable packaging solutions will not only contribute to a greener planet but also position themselves for long-term success in a rapidly changing market. Conclusion Eco-friendly packaging is more than just a trend; it's a necessity. It addresses critical environmental issues, reduces waste, conserves resources, and meets the growing demand for sustainability from consumers. Businesses that embrace eco-friendly packaging not only benefit the environment but also enjoy cost-efficiency, a competitive advantage, and compliance with evolving regulations. As we move forward, the adoption of eco-friendly packaging is a crucial step towards a more sustainable and eco-conscious future.

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Types of Packaging Material - PowerPoint PPT Presentation

presentation about packaging

Types of Packaging Material

Most products sold by retailers will have some form of packaging, and this can serve a few purposes. it can directly hold a product, provide it with some protection and make transportation easier. packaging can also have marketing benefits, displaying a product in a manner that appeals to consumers and showing information about the product. the manufacture of packaging can use a variety of materials. – powerpoint ppt presentation.

  • Plastic can take many different forms, and this makes it a useful packaging material. Depending on the type of resin used, it can form flexible or more rigid materials. Flexible packaging can include cellophane wrap, made from low-density polyethylene. One of this material's common uses is a protective covering in food packaging. Rigid plastic packaging includes polystyrene, used in the manufacture of plastic trays and take-out food cartons. Other types of plastic packaging can include soda bottles, egg boxes and milk cartons.
  • The manufacture of cardboard packaging can typically use either flat or corrugated cardboard. Flat cardboard is thinner material, commonly used in the production of smaller boxes to hold dry foods, such as cereals, as well as other non-consumable products. Corrugated cardboard has a greater strength, due to an increased wall thickness. Its use includes the production of larger boxes for transporting goods, although smaller boxes to directly hold a product can also use corrugated cardboard.
  • The use of glass packaging has a history dating back many centuries. Its most common use in packaging comprises the storage of food and drinks. Glass bottles typically contain consumable liquid products such as soft drinks, beer and wine, although glass can also store non-consumable products such as perfume or medicine. Glass jars typically hold food products such as jam, honey and preserved fruit and vegetables. A benefit of using glass packaging is that you can recycle it repeatedly, making it an environmentally friendly material.
  • Metal packaging generally comes in the form of cans, which can store a variety of products. This includes food and beverages, such as soup, vegetables, fruit and soft drinks. Other products commonly held in metal containers include paint, household sprays, chemicals and pet food. Metal forms a strong, durable container, and this helps protect the stored contents from damage, as well as providing a barrier against heat, dirt and bacteria. Products stored in metal packaging also typically have a long shelf life.

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Clyde Presentation Packaging

Our relationship with artisan makers and trail-blazing manufacturers across a range of industries spans an entire generation. During that time, we’ve continually embraced new technologies and pushed boundaries to keep pace with an evolving market.

PACKAGING INNOVATION

Because the retail industry never stands still, we don’t either. We’re committed to the latest innovations in packaging design, because we understand the value of standing out from the crowd.

DESIGN ON TAP

We might make the box, but that doesn’t mean we can’t think outside it.  At Clyde we pride ourselves on creativity, problem solving and innovation.  Our experienced designers are full of ideas for packaging that will delight and inspire.

EVERY STEP OF THE WAY

As well as all the creative expertise you need, Clyde offers hands-on, practical support to ensure your project runs without a hitch.  From brainstorming ideas through to production, delivery and even storage in our climate-controlled warehouse, our dedicated project managers are here to make your experience completely hassle-free.

EXPERTS IN LUXURY PACKAGING

We’re very proud to have worked with some of the world’s most prestigious brands, but we get equally excited about short-run projects for artisan makers. No matter the brief, Clyde Presentation Packaging brings the same unique blend of experience, creativity and innovation to the table when producing your luxury packaging. Learn more about our innovative process or explore our previous work below

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Who are Clyde?

A family-owned company, Clyde was established in the city of Glasgow in 1977.  At the heart of the spirits industry, and a strong creative scene, Clyde has grown to become a leading UK designer and supplier of bespoke high end packaging solutions.

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For consumers, perfume is far more than just a scent…

alcohol bottle packaging by Clyde.

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luxury cosmetic packaging for perfume.

Packaging is enormously important to your business; it is almost…

I just wanted to say a huge thank you for all your help with the tubes. They look so great and it has been such a pleasure working with you so thank you for being so helpful (and understanding with all of our back and forth with amendments!!).

Hope we can work together again soon.

Thank you so much for sending across and I think that this is a truly superb first effort and will need relatively no changes apart from a few little things in terms of copy – truly I am amazed at how good it is, so thank you! (in response to Clyde’s designs for their box)

We had really great feedback on our gift boxes for Christmas, and didn’t have any issues with damages when these were sent out as well so that’s great!

Thank you again for these.

Just had a look at the boxes and they look amazing!!

Thank you for your time and effort in getting our display box over the line. We are all delighted with the end result and looking forward to getting it round our customers.

It was great working with Clyde Packaging, Baxters of Scotland’s unique offering needed unique packaging and despite being in the heat of post covid supply chain disruptions delivered on time and on budget.

“I couldn’t be happier with the exceptional service and quality provided by Clyde. Their attention to detail and commitment to excellence truly sets them apart. We recently collaborated with them for the release of our latest whisky, and the custom gift boxes they crafted exceeded all expectations. Working to an extremely tight time schedule but did not compromise on quality”

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With vast experience in luxury packaging and bespoke presentation packaging, we’ve yet to find a design or manufacturing question our experienced team can’t answer. Contact us today to discuss your unique requirements further.

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Keep Leading RF Technology

Brewer Science presents materials' impact in sustainable processes, AI, HPC

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Brewer Science presents materials’ impact in sustainable processes, AI, high-performance computing.

Presentation at SEMICON Taiwan 2024 demonstrates how materials impact sustainability, artificial intelligence (AI), and high-performance computing (HPC).

Taipei, Taiwan – August 28, 2024 – Brewer Science, Inc. , a global leader in developing and manufacturing innovative materials for micro- and optoelectronics, shares its expertise on the impact materials have on sustainable lithography processes. Additionally, Brewer Science presents the role innovative materials have in the critical advanced packaging markets, including artificial intelligence (AI) and high-performance computing. Brewer Science's presentations and exhibition will be at SEMICON Taiwan , from September 4 - 6, 2024.

Material Efforts Towards Sustainable Processes

Dr. Douglas Guerrero , Brewer Science's Senior Technologist, presents " Material Efforts Towards Sustainable Processes " addressing the industry's most critical questions when it comes to balancing technology innovation with environmental stewardship, including:

How can the semiconductor industry enhance sustainability while meeting growing consumer demands for eco-friendly practices? What innovative solutions are available to reduce energy consumption in EUV lithography processes? Can transitioning from thermal baking to UV curing improve energy efficiency and lithographic performance? What are the benefits of optical crosslinking in semiconductor manufacturing, and how does it optimize material design, process efficiency, and tool throughput?

With 30 years of R&D experience in patterning materials and processes, over 20 patents, and 60 publications, Dr. Guerrero combines material expertise and industry leadership to present how sustainable processes can lead to energy savings, while improving tool throughput and maintaining lithographic performance. Attend Dr. Guerrero's presentation on September 6 at 2:20 pm in 401, 4F at SEMICON Taiwan, as part of the IC Forum - Advanced Chip Technology and Manufacturing .

The Role of Cutting-edge Materials in Advanced Packaging in AI and High-Performance Computing

Mr. Alexander Smith, Brewer Science's Executive Director of the Semiconductor Materials Business Unit, presents " The Role of Cutting-edge Materials in Advanced Packaging in AI and High-Performance Computing ," providing an insightful review of the challenges and advancements in packaging materials enabling more efficient and cost-effective flows. Mr. Smith will highlight chemical properties and customizable structures that will offer the most innovative solutions to pressing industry challenges. Attend Mr. Smith's presentation on September 6 at 12:00 pm in 701GH, 7F at SEMICON Taiwan, a part of the Heterogeneous Integration Global Summit 2024 – Day 3.

Explore New Innovations in Advanced Packaging at Booth I2116

Throughout the events, Brewer Science's experts will be stationed at booth I2116 in the SEMICON Taiwan Exhibit Hall and available for discussions on how Brewer Science's materials assist with advanced-node patterning and wafer thinning . A list of Brewer Science's PFAS-Free Materials is also available.

Wednesday, September 4: 10:00 am–5:00 pm Thursday, September 5: 10:00 am–5:00 pm Friday, September 6: 10:00 am–4:00 pm

For those unable to attend, Brewer Science extends an open invitation to explore its Packaging Solutions and Advanced Lithography webpages. You can also request datasheets or schedule expert-led consultations on Brewer Science's website. www.brewerscience.com .

About Brewer Science

Brewer Science is a global leader in developing and manufacturing next-generation materials and processes that foster the technology needed for tomorrow. Since 1981, we've expanded our technology portfolio within advanced lithography, advanced packaging, smart devices, and printed electronics to enable cutting-edge microdevices and unique quality monitoring systems for water and air applications. We are Certified Employee-Owned and a Certified B Corporation™ , using our business as a force for good. Our headquarters are in Rolla, Missouri, with customer support throughout the world. Learn more at www.brewerscience.com .

Company Contact Information:

Nathan Ayres

Tel: (US) +1.573.364.0300, ext. 1923

Email: [email protected]

View this announcement on our website.

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User2User 2024: Advanced physical verification flows for 3D IC’s

Advanced Physical Verification Flows for 3DICs

In this User2User 2024 video presentation, now available on-demand, Microsoft’s Amit Kumar discusses 3D IC verification flows with a focus on physical verification. This session explores how 3D ICs enhance system performance and compactness – but challenge verification with their complex tech layers. Amit also discusses methodologies, standards, and solutions, including Siemens XSI & Calibre 3DSTACK uses.

An introduction to the basics of 3D IC

Amit describes how the architecture of three-dimensional circuits allows chips to be stacked vertically. Depending on the technologies being used, the connections between components require connections like TSVs (through silicon vias) and hybrid bonding. 3D ICs are already widely used for networking, mobile and GPUs. They enable heterogeneous integration and are now being leveraged for emerging technologies, including MEMs and photonics.

What are the advantages of 3D IC?

  • Reduced cost and footprint
  • Higher bandwidth
  • Lower power consumption
  • Heterogeneous integration

What are the challenges of 3D IC?

  • Overall system cost is higher
  • Yield is lower for the whole system
  • Higher power density and reduce heat dissipation
  • Design complexity – cross die-placement and routing
  • TSV overhead
  • New sources of timing variations due to TSV’s
  • Require new testing and verification methods
  • Needs to support hierarchical and modular approaches
  • Lack of standards

Flow and data management challenges in 3D IC

In a traditional IC flow, you have to deal with only a few things when you develop from RTL to GDS. For 3D IC you are dealing with multiple flows together in the same timeline.

You have to work with different teams, different engineers, you have to enable different flows that enable the whole system starting from the die and different components Amit Kumar – Principal Hardware Engineer -Microsoft

Effective data management is crucial for successful system design, especially when dealing with multiple stakeholders and intricate processes. 

  • Die-level and component-level specs : Your internal team generates specifications for the die-level and component-level based on the overall system design.
  • Tech files and collateral : Depending on whether you work with a foundry or an OSAT, you gather all relevant tech files and collateral.
  • Third-party integration : If you use third-party ICs or chiplets, you integrate them into your system. This involves understanding their specifications, bump locations, and other details.
  • Complexity and parallel work : Managing these diverse data elements adds complexity. To “tape out”, you coordinate with different teams. This often requires parallel work rather than a sequential approach, which can be challenging due to tight timelines.

An introduction to TSMC 3DBlox 1.0 and 3DBlox 2.0

Amit also describes the focus on and evolution of 3DBlox 1.0 and 2.0 standards. These standards are available via an open-source standards committee of which many EDA vendors and other companies are working with TSMC and help describe the steps needed to perform analysis and verification while taking into account EDA vendor-to-vendor tool compatibility. 3DBlox 2.0 introduced added pre-analysis functionality, as once you build a system or move your bump, for example, at that point, it will be too late. Amit presents the results of an experiment using 3DBlox in their Microsoft environment in this video.

Physical verification and reliability analysis for 3D IC

On the 3D IC physical verification side, the focus is mainly on DRC, ESD, connectivity and alignment to ensure all those things are correct. ESD is especially critical because it’s being done at the die level, the SoC level, to perform point-to-point and current density checks. Amit states there is more work needed on this front.

The approach to 3D IC verification: Amit states that typically, when we try to build everything, we start with the bumps. Sometimes, we get bumps from the foundry, and sometimes, we create our own bumps. So, we create a bump library, basically different configurations with the proper pads and everything – then, using those bumps from the bump library, we do SoC planning. Amit provides an in-depth walk through a verification flow that includes:

  • uBump library and delivery flow
  • Die level, package, and interposer verification.
  • Physical verification using XSI and Calibre 3DSTACK.
  • Optical shrink and thermal expansion handling

Microsoft: Looking ahead at 3D IC

The advantages of 3D IC enable Microsoft to generate low-power, high-performance, high-bandwidth chips in a 3D manner via vertical stacking. Though there are many challenges and work that needs to be done, Microsoft is working with the foundry and end vendors to develop some of the solutions for Microsoft and the broader 3D IC design ecosystem. That said, Amit states that the industry needs standardization that is not exclusively from TSMC. According to Amit, “ I think it should go beyond any foundry; it should be for the general ecosystem .”

If you missed User2User 2024 or attended the event and want to watch the 3D IC sessions again, the library of videos is now available on-demand here:  Click here

To learn more about Siemens EDA 3D IC solutions, visit our  3D IC Homepage

What to read next:

Shifting left for earlier testing in 2.5D and3D IC design

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  • Washington State University
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WSU leaders give presentation on endowments and investing strategies

Leaders from the WSU Foundation and the university’s Finance and Administration team provided an overview of investments and endowments during a livestreamed presentation Wednesday afternoon.

Explanations of how endowments function, the different investing strategies the foundation and the university follow, and the tools used to maximize returns for the benefit of students and the wider university community were discussed by WSU Foundation President Mike Connell and Vice President for Finance and Administration Leslie Brunelli.

The complete presentation is available to watch online .

Central to the discussion was the distinction between the WSU Foundation and the university itself. While the former does support the latter, it was established long after the university and is responsible for investing private donations and funds that don’t include student tuition or state tax dollars.

The WSU Foundation manages approximately $722 million spread across more than 2,900 endowment accounts. The vast majority of that funding comes from private donors seeking to support a specific cause, such as scholarships for students, endowed faculty or deanships, as well as specific programs and activities.

When a donation is made, the foundation enters into agreement with the donor to invest the funds and use revenue generated in support of the agreed upon cause, Connell explained. On average, 4% of the endowment total is distributed each year. That amounted to $27 million in endowment distributions from the Foundation in fiscal year 2024.

The WSU Foundation uses an outside firm, Mercer, to assess the best way to allocate its funds. The largest portion of its funds, about 23%, are in U.S. equities, while significant portions are invested in private and international equities as well as hedge funds and real assets.

The Foundation does not purchase shares in individual companies. Rather, fund managers working on behalf of the university use tools like index funds to diversify investments in pursuit of maximized returns while minimizing risk. As an example, Connell noted that Mercer couldn’t provide WSU a figure on how much of the Foundation’s funds are invested in fossil fuels, but it can give an assessment in terms of the energy sector, amounting to 6-7 percent of the total endowment. And that figure include fossil fuel companies as well as companies working on green energy.  

Brunelli noted that the university itself, meanwhile, invests some tuition dollars as well as funding from the state as its able. State law restricts the investment of these funds by separate 501c3 organizations like the WSU Foundation. Tuition and state funding are invested on behalf of WSU by the state’s treasurer’s office, with priority given to managing liquidity to ensure the university can pay its bills. Because of this, the university takes a more short-term and risk-adverse position compared to the foundation, Brunelli said.

As WSU and institutions of higher education continue to grapple with rising costs, Brunelli noted that private support and its facilitation by the foundation will be even more critical moving forward to ensure the long-term health of the institution.

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  16. Brewer Science presents materials' impact in sustainable processes, AI, HPC

    Presentation at SEMICON Taiwan 2024 demonstrates how materials impact sustainability, artificial intelligence (AI), and high-performance computing (HPC). Dr. Douglas Guerrero, Brewer Science's ...

  17. User2User 2024: Advanced physical verification flows for 3D IC's

    In this User2User 2024 video presentation, now available on-demand, Microsoft's Amit Kumar discusses 3D IC verification flows with a focus on physical verification. This session explores how 3D ICs enhance system performance and compactness - but challenge verification with their complex tech layers.

  18. WSU leaders give presentation on endowments and investing strategies

    The complete presentation is available to watch online. Central to the discussion was the distinction between the WSU Foundation and the university itself. While the former does support the latter, it was established long after the university and is responsible for investing private donations and funds that don't include student tuition or ...

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