The VPEF Endowment
15 years ago some of VPEF’s founding members saw the benefit in creating an endowed fund to support public education in Vacaville in perpetuity. These founding members contributed just over $70,000 to seed a permanent endowment fund. 10 years ago the board decided to actively focus on contributing to the endowment to grow the permanent support the fund could produce. The board created a policy that it would invest 10% of gross annual fundraising into the endowment. 5 years ago VPEF Board Member and major benefactor of public education in Vacaville Ernest Kimme sadly passed away. To all of our surprise Mr. Kimme left VPEF and in effect future generations of teachers and children a very sizeable donation in his estate.
We are incredibly happy to announce that in the first quarter of 2020 past donations along with ongoing contributions have pushed the balance of this fund over $1,000,000!
What Is an Endowment?
Endowments are investment vehicles that generate income for non-profit organizations. They are often set up as a trust, private foundation or public charity.
An organization with an endowment, such as a college, university or non-profit, will invest this money to generate a return that can help fund its various needs. Endowments typically have a board of trustees (VPEF) that makes decisions regarding the endowment, as well as an investment committee and investment manager.
Endowments are often set up so that the principal remains untouched, despite return (interest) on endowments being fairly modest (usually around 5%). The idea is to provide a steady stream of capital to the organization, on top of other donations and income.
Most endowments cap the amount of money that they’ll spend from their investment returns every year. Returns above that threshold are consequently reinvested into the endowment. When returns fall below that mark, the organization may dip into the principal to cover costs. VPEF has decided to not touch any returns until we get the fund to $2,500,000 (we are halfway!). At that funding level the endowment will produce over $100,000 annually in returns to support teachers and students in Vacaville forever!
Endowments are a popular way for donors to give money and support to organizations that they care about. However, a major advantage of donating to an endowment is the fact that donations are almost always tax deductible. As a result, endowment donations often fit in with donors’ financial planning decisions quite well.
What is your legacy?
Are you a retired educator? Parent who wants to pay it forward or local business wanting to make a tremendous impact on public education in Vacaville? You can literally leave a legacy that will last forever and will fund grants for local students, teachers and schools in Vacaville forever. Help us get to our $2,500,000 goal and make a tax-deductible donation today that will last forever. Add VPEF to your estate plan. We can also take donated real property or assets as a tax deductible donation.
With your donation you will join educational champions in Vacaville like Ernest Kimme and your gift will continue to support local students, teachers and schools forever. If you are interested in hearing more, please email us at firstname.lastname@example.org.