Endowed Funds

A strong endowment provides future income that can be used to pay operating expenses, for scholarships, and for other purposes specified by the donors. The General Endowment provides income for operations. Many of the Academy’s named funds have been established to honor loved ones. These memorial contributions provide a lasting tribute that also helps the Academy and the young people it serves. Lincoln Academy Trustees encourage alumni and friends who are considering a planned gift to contact Matt Goetting in the Alumni/Development Office (563-3599) or at goetting@lincolnacademy.org.

Newest Endowment funds

General Endowment Funds:

Reny Family – Unrestricted General Endowment

Named Funds for Specific Programs:

Walter C. Chapman/Rotary Four Way Test Award
George and Helen Weston – Mathematics
George Weston Fund for Technology Education
Johnston Double A – Athletics and the Arts
Trustees’ Building Fund – Construction and renovations

Scholarship Funds:

Matthew S. Budrow Scholarship Fund

Questions & Answers

Q What is Lincoln Academy’s endowment?

A

Lincoln Academy’s endowment started with a small number of gifts in the 1940’s and has grown through bequests, restricted gifts, and wise investment. The Academy’s endowment was valued at about $7,200,000 as of December 2007.

This value fluctuates with the investments in the portfolio. About one-fifth of the endowment is made up of gifts whose income is dedicated to a certain purpose, such as scholarships.

The remainder – the general endowment – is dedicated to supporting operations.

Q Why can’t the endowment be used to fund building projects?

A

Board policy currently draws 5% of the value of the endowment (averaged over three years) to support the operating budget each year.

This 5% is a critical part of the school’s annual income, and allows the school to provide programs and services that are beyond the scope of the tuition.

If the endowment were spent on other projects, the income would not be available to produce the 5% income, and it would be necessary to cut back the programs that are funded by this income.

In addition, when the gifts were made, it was the intent of many donors that endowment principal be maintained and only the income be spent.

Q What is the school doing to raise endowment?

A

Many endowment gifts come as bequests or planned gifts. In many cases, these gifts are not anticipated. One of the goals of the Third Century capital campaign is to increase the operating endowment to provide the additional funds that will be required to maintain and operate any new facilities built as a result of the campaign. This goal to increase endowment can be met through bequests and planned gifts, even though they might not be received immediately. Increasing the income from endowment will prevent cutback in programs due to these additional operating expenses.

Planned Giving

The Heritage Circle Planned Giving Program enables donors to ensure future funding for the Academy through bequests and other forms of estate planning. A planned gift is a wonderful way to remember family members or a favorite teacher. If you inform the school that you have included Lincoln Academy in your will or have made other plans that benefit the school, you become a member of the Heritage Circle.

Planned gifts are a great benefit to the school, and can also benefit the donor by reducing estate taxes and giving more control over an estate. Gifts such as a Charitable Remainder Unitrust enable you to:

  • increase retirement income
  • reduce estate taxes
  • avoid capital gains tax on appreciated assets
  • increase federal tax deductions

These plans are customized for each donor.

Gifts of IRA’s

There are considerable benefits to making a gift of an IRA to a charitable organization. Please call the L.A. Development Office for information on specific ways to make a planned gift.

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