Give the gift that lasts!
Christian organizations and charities depend on donations for their very existence. Every donation is eagerly accepted and is quickly used to meet current needs. Christian schools are no different. But how can you give a gift that isn’t immediately absorbed into the budget? How can you give a gift that will last for years to come? Endowment gifts provide that opportunity.
How does an Endowment Gift work?
An endowed gift can be a permanent gift where the capital is invested for the long-term. It’s like having a savings account or investment where only the interest or income earned on that investment is used each year. Endowment plans can be set up in various ways, depending on the wishes of the donor. The donor may wish to have a fund accumulate for a fixed period of time or he/she may choose to have the annual earnings gifted without delay.
An endowed gift can also be arranged with a much shorter time frame in mind for the underlying capital. A donor can arrange to have the underlying capital applied towards the intended cause or purpose with a shorter time frame arranged (eg. 5, 10 or 15 years) as a means to meeting their charitable objectives.
“Named” Endowment Funds
When a school receives a gift of earnings from its general endowment fund each year, the current school leadership has the ultimate responsibility of determining the best use of these funds. They can direct these funds into the tuition assistance programs or bursaries, use them for capital needs, or even apply them to the operating budget for the benefit of all tuition paying parents.
Our Foundationis also equipped to allow school supporters to meet a specific need of the school(s). This can be accomplished by developing, or contributing to, a “named” endowment fund. The original principal sum is still preserved, as with ‘general’ endowment funds, the difference being the earnings are designated for a specific and legitimate need of the designated school or schools. Named funds can be designated for the benefit of the music, arts, athletics, technology, computer or other programs, as well as for scholarships and bursaries to name just a few. All named funds incorporate the default provision that, should the original need be met or no longer exist, the school’s leadership, in conjunction with the Foundation Board, may apply these earnings to other similar or existing needs.
The Smith’s father is a retired tradesman. He has included a bequest for several Christian schools in his will but he also feels it is very important that our Christian high schools have good shop programs which are properly equipped. He decided to make a one-time $20,000 donation to the Foundation and requested it be used to develop a ‘technology’ fund where the annual earnings of $1,000 or more (based on minimum 5% interest rate) is used by the designated high school(s) to purchase tools and supplies for the shop programs. He also takes great personal pleasure each time he visits the schools on Grandparents Day seeing firsthand the difference his gift has made.
Making a gift to the endowment fund means leaving a legacy, one that is within reach of everyone regardless of financial status. This gift is a way to express encouragement and appreciation for Christian schooling. It is an enduring expression of support to ensure that a Christ-centred education will continue to be affordable for future generations.