What is the Silver Lake College Endowment Fund?
Endowed gifts provide Silver Lake College with a permanent source of income. The gifts are added to the College's Endowment Fund and are invested in perpetuity. The principal is not reduced and the interest earned is withdrawn annually and added to the College's revenues.
Why Are Endowed Gifts Important?
Endowed gifts are key to sustaining Silver Lake College's mission of integrating a quality liberal arts education with professional preparation. The income from the College's Endowment Fund underwrites essential program and operating costs, such as scholarships and salaries, which help to keep tuition increases in check.
What Happens to Endowed Gifts?
All endowed gifts to the College are pooled in one investment portfolio for increased returns. Silver Lake College's investment portfolio provides for a balanced mix of investments to yield growth for the endowment portfolio while assuming moderate risk. The College computes the earnings on its endowment fund based on the calendar year. The withdrawal, or payout, is allocated to the following fiscal year budget, which begins on July 1.
What is the Value of Silver Lake College's Endowment Fund?
In 1992, the Silver Lake College Endowment was valued at $881,275. Through the generosity of individuals (alumni and friends), corporations, and foundations, the Endowment has increased more than 500%. In 2011 the endowment was valued at $6,011,000.
How long must an endowed gift be invested before the earnings can be spent?
Endowed gifts are invested for a minimum of one calendar year (12 months) before the interest can be allocated. The payout, based on a combination of the portfolio's earnings and capital gains, is calculated as no more than five percent of the principal, in accordance with IRS regulations.
What's the average payout of an Endowed Fund?
The average payout is based on the amount of the endowed gift. For example, if the gift is:
- $10,000 for an Endowed Scholarship Fund, the annual payout is no more than $500 and that amount is applied to the student's tuition.
- $100,000 for a Capital Improvement Fund, the annual payout is no more than $5,000, which is allocated for the enhancement of classrooms, labs, libraries, and technology.
- $1,000,000 for a Endowed Chair, the annual payout is no more than $50,000, which is allocated for salary and benefit expenses for the faculty position in the academic area designated by the donor.
How is the payout allocated for an Endowed Fund?
The payout is allocated in accordance with the wishes of the person providing the gift. They may designate their endowed gift for scholarships, faculty support, academic program support, and capital improvements. To ensure their wishes are honored in perpetuity, gift agreements are written that delineate their intentions and are signed by the person giving the gift and the president of Silver Lake College.
Can gifts be made to an existing Endowed Fund?
Yes. People who give gifts, friends, alumni, corporations and foundations may contribute to an existing endowed fund. The contributions will be added to the fund's principal.
What is the Minimum Gift Required to Establish an Endowed Fund?
The minimum gift amount required to establish an Endowed Fund is determined by its purpose, as outlined below.
Minimum Gift Amounts for Endowed Funds
- $10,000 for an Endowed Scholarship fund for student financial aid.
- $25,000 for an Endowed Faculty fund to enhance teaching and delivery methods.
- $50,000 for an Endowed Academic Program fund to expand student learning opportunities.
- $100,000 for an Endowed Capital Improvement fund to enhance classrooms, labs, libraries, and technology.
- $500,000 for an Endowed Professorship fund to underwrite the salary of a faculty member in a specific discipline.
- $1,000,000 for an Endowed Chair fund to underwrite the salary of a faculty member in a specific discipline.
Naming Opportunities for Endowed Funds
Endowed gifts may be named in honor of the person providing the gift, or a name they designate, for example, in memory or in honor of loved ones.
How can I learn more about Endowment Funds?
Silver Lake College will be pleased to assist you in making a gift that is appropriate to your circumstances and in accordance with your wishes. For more information, please contact: Marc R. Barbeau, Vice President of Advancement and External Relations, at 920-686-6176 or email@example.com.