Yes. The endowment of Woodlands Academy consists of two sets of funds:
a. Pure Endowment. These funds were restricted by the donor upon the onset of the gift to Woodlands, to be held in perpetuity. The growth and income on these funds may be utilized in accordance with the policies set out by the Board of Trustees, but the principle must remain intact. These may or may not be restricted in their use. The most common restriction on the use of the proceeds from these funds is scholarship and financial aid.
b. Funds Functioning as Endowment. Sometimes referred to as quasi-endowments, these are funds that the institution has determined are to be retained, managed and invested as if they are endowed. These funds add to the long-term security of the institution, in that they experience the same growth and receive distributions like a pure endowment, but the principal of these gifts can be accessed by the vote of the trustees as needed.
At the end of the 2013 fiscal year (June 30, 2013) the value of the sum of these two Woodlands Academy endowment accounts was just over $3 million.
In this step-by-step illustration you will see how an endowment gift works, the benefit to current Woodlands Academy students, and how such a gift will serve the future of Woodlands as well.
i) An Alumna makes a $100,000 gift to the Woodlands endowment to establish a scholarship in her mother’s honor.
ii) The donor signs a Letter of Intent, which expressly indicates that the principle gift will be held in perpetuity for the benefit of Woodlands Academy, and used in accordance with the donor’s wishes.
iii) The Board of Trustees authorizes the investment of the gift with Capital Guardian, in the Woodlands Academy endowment funds.
iv) A pre-determined portion of the annual return (presently set at 5% of the average market value during the previous three fiscal years) is distributed to Woodlands Academy to award a scholarship in the name of the donor’s mother. The fund’s principal remains intact.
v) Any growth in excess of the annual distribution may be reinvested to generate growth in order to meet the needs of future scholarship recipients.
The benefits are many, and long-term:
• A talented student receives financial support.
• Woodlands Academy can recruit and retain top students, regardless of their ability to pay.
• A steady revenue stream allows the school to plan for the future.
• The donor’s mother is remembered with a legacy of generosity that will change lives, and transform the world.
This example is just one of the many ways endowed gifts can have an impact. In addition to scholarships, donors can endow faculty chairs or make an unrestricted endowment gift to assist in the area of greatest need.
Presently, most of the distributions from our endowed funds are utilized for either merit scholarships or financial aid. This ensures the vision of Madeleine Sophie Barat: That every young woman who wants a Sacred Heart education and can meet our rigorous admission standards can benefit from the Woodlands experience.
Woodlands Academy will place all gifts to endowment into a separate pool of funds, invested and managed by
. The Finance Committee of the Board of Trustees reviews the performance of these investments annually. To review our audited financials, please contact the Director of Finance and Operations.
No. Any gift to the endowment will be deposited into the unrestricted use investment pool. However, in order to set up a new, named pure endowment fund with a restricted purpose, a minimum of $50,000 is required.
A gift to the endowment is such an important endeavor that Woodlands Academy will work with you to structure a pledge that can be fulfilled over a number of years, with a gift of appreciated stock, or even through an estate plan gift. Please contact Tami Hoekstra Rocha '80, Director of Advancement for more information.
Please contact Tami Hoekstra Rocha '80
, Director of Advancement.