Endowments
Endowed funds are permanent funds which are set aside either for a particular purpose or for the general needs of Sandia Prep. Only the earnings on these funds may be spent; a portion of the earnings is reinvested in the fund each year to ensure growth of the principal and increased earnings in future years. Once an endowment is established it lasts forever.
• How Endowments Work
• Endowed Funds
• Investment Policies
• Making an Endowment Gift
Suppose a donor makes a gift of $100,000 to endow a favorite program. The funds are invested and, in the first year, earn 10 percent, or $10,000. Half of the earnings ($5,000) are available to spend on the chosen program; the remaining $5,000 is reinvested in the endowment, raising the principal to $105,000. The following year it again earns 10 percent, which this time will be $10,500, half of which can be spent while the remainder is reinvested.
Besides the general endowment, whose income may be used wherever it is most needed, there are currently several endowments in the following areas:
- Financial aid
- Professional development (both for Upper School and Middle School teachers)
- Library
- Art
- Outdoor Leadership Program
- Music
- Technology
Endowed funds are invested according to the school's investment policy, approved by Sandia Prep's Board of Trustees in July 1998. This policy covers investment objectives, standards, risk tolerance, asset allocation, performance measurement and distributions.
The funds are managed by a professional management company and performance is monitored on a regular basis by the board's investment committee.
For a copy of the investment policy, please e-mail our Development Office.
Making an Endowment Gift In order to generate a significant income stream, endowment funds require a large initial sum to be invested. This amount can be pledged over several years. Additional donations to an endowment can be made at any time.
The minimum required to start a new endowed fund is $25,000.
Anyone making the required minimum gift can start an endowment. Because of its permanence, it is important to ensure that the wording of the endowment terms covers future contingencies. School representatives work with donors to develop a mutually agreeable endowment document, which then becomes part of the permanent records of the school.
Questions?
Contact the SPS Development Office.