GIVING
Breakthrough Annual Fund
The Annual Fund is the School's yearly campaign to raise funds in support of the daily operating budget. All independent schools are faced with this same need - to make up the difference between costs and tuition. Contributions help to close this gap that exists between tuition and the actual cost of a Horace Mann education. The Annual Fund touches all aspects of the School as it represents approximately 8% of the overall operating budget.
Endowment Giving
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Endowments. An endowment is, quite simply, a fund built up from donations (or sometimes from a single large donation) to a non-profit. The principal (the original sum) of the fund is invested, and the income is used to fund the activities of the organization or institution. Usually, some of the income is also reinvested, allowing the principal to grow, so that the endowment becomes larger over time, and produces more income.
An endowment may benefit the whole organization or institution, or it may be earmarked for a particular program or activity. In a university, for instance, particular professorships may have their own endowments (usually the gift of a single donor). In a hospital, the cancer clinic or research on diabetes treatment may be supported by an endowment intended only for that purpose.
Planned giving arrangements.
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A planned giving arrangement is a way for a donor to have his cake and eat it, too – at least some of it. It allows him to contribute to a non-profit organization or institution (for, according to the government definition, charitable, educational, scientific, literary – including the arts – or religious purposes) and receive from his donation, for himself and/or another designated person or people, an income for life or for a set period. The donor gets a tax break and ongoing tax advantages, as well as a reliable income. The charity gets to invest the money, and, usually, to keep whatever’s left after all the agreed-upon payments have been made.
There are several different kinds of planned giving arrangements:
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Charitable gift annuities (CGAs). A donor’s irrevocable (non-returnable) gift to a non-profit, only part of which is a charitable donation, furnishes one or two people (usually the donor and her spouse, but it could be anyone the donor chooses) with an annuity (a fixed annual income) from the time of the gift or some agreed-upon later date until the death of the longer-lived person. The amount of the annuity is a percentage of the original donation (minus the amount recorded as a purely charitable contribution), determined actuarially by the age(s) of the beneficiary(ies) at the start of payments.