Question: How does an Endowment work?
Answer: Donors may make a one-time contribution to establish an Endowment, or they may make multiple contributions over time until the fund is endowed. Contributions may be added to the fund after it is endowed. Once the fund is fully endowed, earnings generated from the investments after one year are then used to fund the purpose you have designated (scholarship, capital improvements, maintenance, technology, science, etc.)
Question: Do I pay a fee to set up an Endowment?
Answer: Endowment gifts are subject to a one-time very small development fee. This fee is taken not from the gift but rather from the earnings generated by the Endowment. These development fees are used as seed money to generate additional Endowment gifts for Pine Forge Academy.
Question: Are there other costs associated with an Endowment?
Answer: Because of the additional administrative responsibilities associated with managing Endowments, the Foundation Trustees have authorized that a portion of the earnings will be returned to the Foundation to offset these administrative expenses. This management fee, projected to be 1 percent, will be deducted from gross earnings. |
