Frequently Asked Questions about Endowments
What is an endowment?
An endowment is a fund created by gifts totaling at least $15,000 that are permanently set aside by Starr King School for the Ministry to provide benefits to students, faculty or programs, year after year, generation after generation. It is the most lasting way to give to make a gift to the school. Endowments may be funded by cash, securities, pledged over five years or created through a planned gift.
For endowed funds, the principal (endowment corpus) is invested and a portion of the income is expended to carry out the donor’s purpose. To guard against the eroding consequences of inflation, the remaining portion of investment return remains in the reserved earnings of the fund. The goal is to ensure that the fund maintains its purchasing power over time to support future generations.
Why are endowments important to Starr King?
An endowment creates financial stability and allow for a rich variety of activities such as scholarships students, support for faculty members through professorships, and support for other programs.
Can an endowment be designated for a specific purpose?
Absolutely – as with any gift to Starr King, an endowed gift offers alumni and friends the opportunity to have their names, or the name of a loved one, linked to an area in which they have a special interest. Some donors create unrestricted endowments, recognizing that the needs and challenges of the future will differ from those of today. Unrestricted gifts are used for the highest priority needs on campus and provide the most flexibility as these needs change. Many donors create scholarships to aid students. Other donors choose to direct their gifts to areas or programs of special significance to them, knowing that these additional funds provide an opportunity for those programs to grow and excel.
More FAQs to come. Check back soon. If you have questions in the mean time about endowments, please contact Jessica Cloud at 571.438.8333.