School Endowments are established to ensure a perpetual source of support to serve this mission. Its funds provide access to an exceptional education for resolute students from all social and economic backgrounds, attract world-class educators and scholars, and support the development of leading-edge educational opportunities. As a reliable pool of funds, the endowment enables independent schools to meet budgetary obligations when other sources of revenue fluctuate.

Gifts to the endowment are particularly vital to every independent school. When donors give to the endowment, they create an enduring legacy—because endowed gifts exist in perpetuity. When the gift is invested, the principal value is never touched, and an established percentage of the income is distributed annually for use by the school. Over time, each gift grows in value, providing increasing resources in future years. The sustained benefit of a gift to the endowment far exceeds its original value. The long-term impact of support is immeasurable.

In this presentation the presenter will explore with participants how to define endowment, drafting a sound investment policy, traditional vs progressive endowment investing strategies. A discussion of spending policy, to understand how a school may stabilize annual spending levels as well as achieve intergenerational neutrality by preserving the real value of the endowment portfolio over time. To achieve these two objectives, it is critical that spending policy addresses a long-term targeted spending rate combined with a smoothing rule to adjusts spending gradually when there are changes in the endowment market value. Transparency of investment policy is critical for today’s donors

Finally, the presenter will discuss with participants a comprehensive look at stewarding endowment donors from working with the business office and communicating to donors both the qualitative and quantitative elements of a donor’s endowment. Additionally, you will gain an understanding marketing strategies to engage donors, development strong gift acceptance polices and discussing different endowment vehicles such as endowed funds vs academic chairs and the pitfalls with different fund vehicles and initiating gift levels to establish an endowed fund.