Securing our Future
What is an Endowment Fund?
CA's Endowment Fund is a savings account for the school, which is invested according to policies adopted by the Board of Trustees and the Endowment Advisory Committee. A portion of the Endowment is then spent each year to help cover the school’s annual expenses, either for the general operating budget or for specific programs designated by the donor.
CA's policy states that the school will spend 5% of the trailing twelve-quarter average of the Endowment's market value each year. Any annual earnings beyond the 5% are reinvested to build the corpus.
Why is it important?
The Endowment Fund provides a steady source of income to CA, making it possible for the school to be less reliant on tuition and annual fundraising programs to balance the budget each year. In effect, a larger Endowment Fund enhances CA's ability to fulfill its mission now, and for many years to come.
Giving to CA's Endowment Fund
Endowment growth is an area of strategic importance for CA. As of June 30, 2015, CA’s Endowment Fund stood at $25 million, which seems like an impressive amount, but still ranks below national benchmarks relative to schools of the same size. Giving to the Endowment Fund provides a unique opportunity to you as a donor to make a dramatic impact on a part of the CA experience that you care about the most.
Gifts and pledges to the CA Endowment in the form of cash or appreciated securities have the most immediate impact. However, gifts to the Endowment can also occur over a longer term through bequests in estates, gifts of real estate, and structured planned giving instruments.
Unrestricted and Restricted Endowment Gifts
Unrestricted gifts in support of the CA Endowment place no limitations on the use of the income from the funds. Such income is used to meet the school’s most pressing needs, as determined by the administration and Board of Trustees on an annual basis. Restricted gifts in support of the CA Endowment mandate that the income be used for a specific purpose, such as student financial aid, faculty support, or a particular academic or extracurricular program. All endowed funds of $25,000 or more are eligible to be named in honor of the donor, or someone of special importance to the donor.
Establishing New Named Endowment Funds
- A minimum of $250,000 is required to establish a named, endowed Chair of Distinguished Teaching fund that confers special recognition on outstanding Colorado Academy teachers.
- A minimum of $100,000 is required to establish a named, endowed scholarship to provide an annual subsidy for future financial aid students to attend, and benefit from, CA.
- A minimum gift of $50,000 is required to establish a named fund for other restricted programmatic areas such as faculty salaries, professional development, academics, athletics, fine arts, technology, student or faculty awards, facilities, Horizons at CA or any other area of pressing need for the school.
- A minimum gift of $25,000 can establish an unrestricted named fund. The income from these funds can be used to address operational needs as determined by the Board of Trustees that change from year to year.