The Lovett School Endowment Fund is a collection of funds (unrestricted and restricted) that supports students, faculty, staff, and programs. Each year about 6 percent ($2.1 million in 2007–08) of operations are funded by endowment, making it one of the school’s three main sources of income, along with tuition (80 percent) and annual giving (5 percent). (The remaining 10 percent is made up of funds from auxiliary operations and program fees.)
Continued endowment growth helps the school maintain reasonable tuition levels while continuing to provide excellent programs and exceptional faculty and staff, which results in smaller, more personalized classes and plentiful co-curricular offerings. Lovett's endowment total stands at $54.2 million (market value as of June 30, 2008).
For more details on endowment policies and gifts, please contact Andy Spencer.
Endow Your Annual Fund Gift
Annual giving is the lifeblood of The Lovett School and most independent schools and colleges. We count on the Annual Fund dollars that are raised each year to maintain the margin of excellence that makes a Lovett education so special.
Over the past several years, many charitable organizations have begun campaigns to have their donors "endow" their annual gifts. This process involves establishing a bequest, or a gift in your will, the investments from which can create a gift for Lovett each year forever.
This type of endowed gift is a wonderful idea for those Annual Fund donors who want to make sure that Lovett continues to flourish. The following donors have made such gifts:
Mr. and Mrs. C. Knox Massey, Jr.
Mr. and Mrs. Ian James McCarthy
Mr. Randolph Whitfield
For Example
How much would it take to endow a $1,000 gift so that Lovett could receive that income forever? Lovett's policy for spending endowment income is to use 5 percent of the endowment's total value each year. (This does not mean that it earns a total return of only 5 percent, only that the school spends that amount; it reinvests the difference to offset inflation.) To calculate the needed number to endow, divide the annual gift amount $1,000 by the amount called for in the spending policy 5 percent and you get $20,000. So, contributing just $20,000 can continue the $1,000 annual gift indefinitely!
A smart solution
| If your annual gift is: |
Perpetuate it by giving: |
| $100 |
$2,000 |
| $250 |
$5,000 |
| $500 |
$10,000 |
| $750 |
$15,000 |
| $1,000 |
$20,000 |
| $5,000 |
$100,000 |
And remember, the school's spending policy allows the asset value, and thus the annual income, to grow to help offset inflation. Because of this increase, many donors can actually increase their gifts over time. For example, with a total return of 10 percent in one year and with only 5 percent spent, the other 5 percent is reinvested. By the second year, the value of the fund is 5 percent higher, or $21,000, and the "gift" from the fund is $1,050.
Learn More
To discuss your legacy of giving, contact Andy Spencer in the Lovett Development Office by phone at (404) 262-3032, ext. 1255; by mail at 4075 Paces Ferry Road, N.W., Atlanta, GA 30327; or by e-mail at aspencer@lovett.org