13 Gazing up at the Linderman Library Rotunda’s stained glass for the first or one of the last times as a student always inspires awe. Description of Reserve Gifts to the annuity program are invested in accordance with state requirements. The assets held generate income to distribute to beneficiaries and provide a reserve of capital, if needed, to make up the difference between the income earned and the required distributions. Upon the termination of the life interests covered by a given contract, a proportionate share of the entire reserve is applied to the purpose outlined in the original gift annuity agreement. At maturity, the contract balance is invested in the endowment fund. Lehigh has completed applications for all states with annuitants and all state requirements for registration of gift annuity programs. At June 30 each year, Lehigh performs an internal review of our gift annuity reserve compared to the total reserve assets to the present value of the reserve’s liabilities. Our reserve assets at June 30, 2023, are well in excess of the present value of its liabilities.