CROFTON HOUSE SCHOOL FOUNDATION
What is the Crofton House School Foundation?
% e CHS Foundation was established as a separate registered charity in 1980 to support a financially stable future for Crofton House School through the responsible management of spendable and endowed charitable donations. % e Foundation is governed by its own Board of Directors appointed by the CHS Board.
What is a spendable fund?
% e entire fund, including the initial gift and any earnings, may be spent.
What is an endowment?
Endowments are permanent funds made up of charitable gifts that provide a source of financial stability for institutions. % ese funds live in perpetuity because the School invests the initial gift amount and only spends from a portion of the returns, leaving the principal to grow for future generations. Most endowments are a collection of individual funds designated for specific purposes agreed upon by the Foundation, the School, and donors. % e CHS Foundation takes an intergenerational approach to managing endowed funds, balancing the needs of current students with those of future generations.
Why does endowment matter?
Endowment fundraising has become increasingly important for independent schools across Canada. A strong endowment has the potential to help schools safeguard against tuition dependence, weather unforeseen challenges, and make investments in new opportunities as they arise. Adding new gifts to the endowment accelerates the fund’ s growth and spending power.
What is the rate of return on the funds?
% e rate of return for funds in the Crofton House School Foundation is approximately 8 % annually.
How does the School benefit from the funds?
Each year, the Crofton House School Foundation disburses approximately 5 % of investment earnings to the School in accordance with CRA requirements.
DID YOU KNOW? Distributions from the Foundation fund over half of the School’ s financial assistance needs.
What does this look like? Original gift to the endowment: $ 250,000
• Investment income over one year with 8 % growth: $ 20,000
• Amount available to distribute to CHS for the fund’ s agreed purpose( e. g., financial assistance): $ 12,500
• Amount available to reinvest in the endowed fund: $ 7,500
• Amount available to invest for the next fiscal year: $ 257,500
• Assuming the same 8 % growth and 5 % distribution of income over 20 years, the initial gift of $ 250,000 would grow to approximately $ 450,000 and generate over $ 335,000 for CHS
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