Long Term & Endowment Gifts
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 operating budget? How can you give a gift that will last for years to come? Long-Term and Endowment Gifts provide that opportunity.
How do Long-Term and Endowment Gifts work?
A Long-Term gift sees the Foundation invest the gift according to the timeline the donor prefers. That might be for five, ten or even fifty years. For that period of time, the principal is not touched, and only the growth is gifted to the school for whatever purpose the donor has specified. After it has grown for ten years (for example) the donor may specify that the principal can also be part of the annual gift given to the school as a means to meeting the donor’s charitable objectives.
An endowed gift is invested and locked away permanently. It can never be touched, even if the school is threatened with closure. If the school should cease to exist, the gift would be moved to another suitable charity according to CRA regulations. In perpetuity Endowments are less common nowadays, but they can still be arranged if that is the donor’s wish. These gifts are 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 choose to have the annual earnings gifted without delay. The Christian School Foundation is pleased to hold in trust and administer Long-Term and Endowment funds on behalf of its member schools.
Named Long-Term and Endowment Funds
When a school receives a gift of earnings from its general Growth (Long-Term) Fund each year, the current school leadership has the responsibility of determining the best use of these funds. These funds can be directed to the tuition assistance programs or bursaries, used for capital needs, or even applied to the operating budget for the benefit of all tuition-paying parents.
However, the Foundation is also equipped to allow school supporters to meet a specific need of the school(s). This is accomplished by developing, or contributing to, a Named Long-Term or Endowment fund. The original principal sum is still preserved for as long as the donor specifies, but the earnings are designated for a specific need of the school or schools. Named funds can be designated for the benefit of music, arts, athletics, technology, computer or other programs, as well as for scholarships and bursaries. All Named Funds incorporate the 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 Smiths’ father is a retired tradesperson. He has included a bequest for several Christian schools in his will but also feels it is very important that Christian high schools have good shop programs which are properly equipped. He decides to make a one-time $20,000 donation to the Foundation and requests it be used to develop a ‘technology’ fund where the annual earnings of $1,000 or more (based on minimum 5% interest rate) are used by the designated high school(s) to purchase tools and supplies for the shop programs. He takes great satisfaction each time he visits the schools, seeing first-hand the difference his gift has made.
Making a gift to a Long-Term or Endowment Fund is another way of leaving a legacy, one that is within reach of everyone regardless of financial status. Such a gift is a way to express encouragement and appreciation for Christian schooling. It is an enduring expression of support that will ensure that a Christ-centred education will continue to be accessible for future generations.