How it works
Endowments are a particularly powerful investment in YENDOW's future because they deliver a dependable, perpetual source of funding for our programs
Establishing an endowed fund is easy. Generally, the procedure for endowing a fund is as
follows:
- With a minimum gift of $10,000, you can establish an endowment to benefit YENDOW. Options are available to allow you to reach the $10,000 minimum over time.
- The use and purpose of the endowed gift is documented in a written Gift Use Agreement (GUA) between the donor and YENDOW. Once established, your endowment fund will be used exclusively for the purpose outlined in the GUA.
- Your endowment is prudently invested along with all endowed funds. YENDOW’s investment portfolio is diversified to provide healthy long-term returns that should outperform the general market over time while minimizing losses during market downturns.
- Each year, a percentage of your endowed fund’s 36-month rolling average value is distributed to benefit YENDOW as designated in the GUA. Investment growth beyond the distribution to YENDOW and endowment advancement fee is added to the principal to help protect the fund against inflation and market fluctuations.
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EXAMPLE GROWTH/EXPENDITURE PROJECTION
Mr. and Mrs. Thomas work with an Endowment Development Officer (EDO) to create an
endowment, establishing a full high school scholarship with a gift of $105,000 .
$100,000* is invested along with the other endowed funds in YENDOW’s endowment pool.
A percentage of the 36-month rolling average value (4%^) is distributed from the fund to
support high school youth scholarships or other programs of your choice during year one.
A small Endowment Advancement Assessment based on a percentage of the 36-month
rolling average value (1.5%^) is distributed to YENDOW annually to help fund fundraising
activities, and endowment investment management.
Assuming an annual investment return of 8.0%*, the Thomas High School Scholarship Fund
totals $102,500 by end of year one (after 5.5% total distribution and assessment).
This cycle continues in perpetuity, providing permanent income for scholarships and other
programs under the YENDOW Gift Use Agreement (GUA).
Example Figure - For Illustration Only
THOMAS ENDOWMENT GROWTH, EXPENDITURE OVER 10 YEARS
| Year | Endowment Beginning Balance | Projected Earnings on Endowment (net of 5.5% distribution and assessment)** | Projected Distribution to YENDOW (4.0% 36-mo. Avg^) | Projected Endowment Advancement Assessment (1.5%^) | Projected Endowment Year-End Total |
|---|---|---|---|---|---|
| 1 | $ 100,000 | $ 2,500 | $ 4,000 | $ 1,500 | $ 102,500 |
| 2 | $ 102,500 | $ 2,563 | $ 4,100 | $ 1,538 | $ 105,063 |
| 3 | $ 105,063 | $ 2,627 | $ 4,203 | $ 1,576 | $ 107,689 |
| 4 | $ 107,689 | $ 2,692 | $ 4,308 | $ 1,615 | $ 110,381 |
| 5 | $ 110,381 | $ 2,760 | $ 4,415 | $ 1,656 | $ 113,141 |
| 6 | $ 113,141 | $ 2,829 | $ 4,526 | $ 1,697 | $ 115,969 |
| 7 | $ 115,969 | $ 2,899 | $ 4,639 | $ 1,740 | $ 118,869 |
| 8 | $ 118,869 | $ 2,972 | $ 4,755 | $ 1,783 | $ 121,840 |
| 9 | $ 121,840 | $ 3,046 | $ 4,874 | $ 1,828 | $ 124,886 |
| 10 | $ 124,886 | $ 3,122 | $ 4,995 | $ 1,873 | $ 128,008 |
| Total 10-year distribution to YENDOW: | $ 44,814 | ||||
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* |
Net of applicable one-time fees at time of gift. Visit www.yendow.org/fees for details |
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** |
Illustration assumes 8.0% annual investment growth. Figures and percentages are for illustration purposes only. Actual investment performance will vary. |
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|
^ |
Annual Distribution (4% of 36-month rolling average) and Endowment Advancement Assessment (1.5% annually). |
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Above Table can be developed to meet your specific requirements of First Year Endowed Gift (Beginning Balance) and Projected Distribution (Endowment Growth/Expenditure) over a 10 to 100-year period.
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