Endowment funds provide future income that can be used to pay operating expenses, scholarships, and 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 and also help the Academy. We encourage alumni and friends who are considering a gift to the Endowment to contact the Alumni and Development Office (563-3599) or at email@example.com.
Questions & Answer
Q. What is Lincoln Academy’s endowment?
Lincoln Academy’s endowment started in the 1940’s and has grown through bequests, restricted gifts, and wise investment.
This value fluctuates with the investments in the portfolio. About half 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?
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.
Q. What is the school doing to raise endowment?
Many endowment gifts come as bequests or planned gifts. In many cases, these gifts are not anticipated. One of the goals of the 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.
Gifts of IRA’s
There are considerable benefits to making a gift of an IRA to a charitable organization. Please call the LA Development Office at (207) 563-3599 for information on specific ways to make a planned gift.