Ways to Give
As The Ella Nash Society newsletter celebrates and inspires women’s volunteerism and charitable giving, an understanding of the language of philanthropy is necessary. “Endowment” and “endowed funds” are terms that are oft-used and little understood. Donors have contributed a record-breaking $161 million to the Our Allegheny: Our Third Century Quest endowment campaign since July 2011. What will it mean for the College when we reach the $200 million goal?
In simplest terms, endowments function as special savings or investment accounts. They are permanent accounts where money is put into a fund (the principal) and restricted by agreement and/ or policy such that only a portion of the interest earned on it is made available for charitable use. Principal is not touched without member/board/trustee approval.
Organizational endowments are themselves often comprised of a number of individual funds. Allegheny’s $222 million endowment has 693 donor-established funds providing more than $8.6 million annually for operations. Each organization has its own spending formula: ours is 4.25% of a three-year average as revalued each June. Using an average account value helps to protect from financial spikes and declines. Thus, a $100,000 endowed fund at Allegheny will generate about $4,250 for spending in a given year.
Organizations set their own rules for gift minimums, interest areas, and reporting schedules. Donors name their funds and determine their purpose in consultation with organization staff. Fund donors or their designees should expect to receive regular financial and programmatic fund activity reports.
Donor-established endowments at Allegheny provide support for every aspect of campus life, including scholarships, student-faculty research, internships, study away, professorships, athletics, library materials, laboratory supplies, technology and our beautiful buildings and grounds. The minimum gift for establishing an endowment at Allegheny is $50,000 (payable over up to five years), and contributors are welcome to add to existing funds. Read the complete list and description of our endowed funds at allegheny.edu/scholarshipfunds
There are many ways to fund endowments beyond writing a check: appreciated securities, real estate, gifts from IRAs and life insurance; and valued art, jewelry and collectibles. Endowments may be established during life or through one’s estate. We suggest that donors focus on the impact that they would like to make as they consider how much and what assets to give to charity.