What is endowment and how does it help Ursuline Academy?
Simply put, an endowment is a pool of funds received from contributions which are invested and generate income that meets a specific purpose determined by the donor.
At Ursuline, endowment contributions are deposited in the Ursuline Foundation, a registered nonprofit organization established to provide support to the school. The Ursuline Foundation complies with Public Disclosure requirements of the Annual Form 990 as stated by the IRS under IRC 6104, which may be inspected upon request. Funds which reside in the Ursuline Foundation are invested and governed by a Board of Trustees.
Giving to Endowment
Contributions to endowment may be made in any amount and may be either unrestricted or restricted (e.g. designated for tuition assistance, an academic department, community service, etc.).
Donors contributing $25,000 or more may establish a fund in their names, in memory of a loved one, to honor a teacher or in some other suitable manner. Most often, these funds are created in order to provide students with tuition assistance through annual grants. An example of how a named endowed fund is established and operates is as follows:
- A donor or donors make pledges to contribute a specific sum to Ursuline each year for up to five years
- Contributions are set aside within the Ursuline Foundation until the corpus, or principal reaches $25,000, the minimum level for distribution
- Once the fund achieves this level, it matures for one year
- After that time, annual grants of 4.5% of the corpus are awarded in perpetuity
Unlike financial support received from the Annual Fund campaign, Ultimate Auction or Big Green Raffle – which is unrestricted and designated for current needs in the immediate fiscal year – gifts to endowment help secure the future financial stability of Ursuline Academy, as they are designed to last forever.
Donors may contribute to endowment with contributions of cash or securities. Endowment gifts may also be made through a bequest, life insurance, charitable trust or other planned gift option.
For information about Ursuline’s Endowing the Legacy fundraising campaign for endowment, click here.
Perhaps there is no more generous act than helping future students receive an Ursuline education through the creation of an endowed scholarship fund. Grants are awarded each year from a portion of the interest attached to the fund, allowing the corpus to stay intact. Consequently, an endowed fund created today will serve Ursuline students forever.
Currently, sixty-one named endowed scholarship funds provide annual awards to Ursuline students. To be eligible for a grant from an endowed scholarship, families must complete and submit the FACTS application.
For additional information about contributing to Ursuline’s endowment, please contact Director of Development, Tim Ranaghan at 513.791.5794 ext. 1222 or firstname.lastname@example.org.