A College’s endowment helps attract and retain top students, faculty and staff. It also allows them to pursue unique and critical initiatives, enhancing the College’s status as a leader in higher education. Endowment income enriches the educational, cultural and social experiences of the campus and the local College communities by supporting financial aid for students, professorships and fellowships, research opportunities, internships, academic and cultural programming, local community outreach and many other initiatives.
Saint Paul’s College endowment provides annual income that supports the College’s operations, thereby reducing the College’s dependence on tuition, fees and other revenue. It is derived from gifts wherein the donors restrict their gifts to the endowment (“permanently restricted funds”), gifts wherein the donors did not restrict the gifts to the endowment but the Trustees chose to place them there (“unrestricted funds”), and transfers from annual operating funds (“unrestricted funds”).
WHAT IS THE DIFFERENCE BETWEEN AN ENDOWMENT AND ANNUAL GIVING?
Annual giving helps ensure that the College is strong each year, while the endowment builds a strong foundation for coming years.
Annual giving supports the operating budget and, thereby, benefits current students each year.
Gifts and pledges made to the Annual Fund are for one fiscal year (July 1-June 30).
Endowment giving benefits current and future students. The original gift is invested in the pooled endowment fund.
A percentage of each endowed fund’s market value is paid out each year for its designated use.
That income supports the operating budget, taking pressure off tuition and annual giving to fund the entire cost of a Saint Paul’s College education.
Pledges to the endowment can be paid over a period of years.
CREATING AN ENDOWMENT
Alumni, parents and friends of the College who make endowment gifts help to ensure that the institution, or a particular program or activity, will exist in perpetuity. Many of these donors have associated their names with gifts to the endowment and receive recognition inside and outside the College community for their gifts.
Behind each endowment gift is a personal motivation—to repay a debt of gratitude for the donor’s own education, to honor a loved one, or to make a positive impact on society.
An endowment can be created through an outright gift of cash; appreciated properties such as securities or real estate; a realized estate provision; a charitable trust or other life income plan; retirement plan assets; or an insurance policy. Gifts can be pledged over a number of years.
To find out how you can leave a legacy by creating an endowed fund or for more information on creating an endowment, please contact the Office of Institutional Advancement at (434) 848-6412.
Saint Paul’s College does not provide tax advice and encourages all donors to contact their personal tax advisor for all questions and decisions related to the tax treatment of any gift made to the College.