Bridgton Academy’s endowment supports a number of initiatives, including student scholarship, faculty professional development, and facilities management. Bridgton Academy is actively seeking to grow our endowment, which currently stands at approximately $4.4 million dollars. Our endowment provides an ongoing source of financial support for our mission. Every year, a portion of BA’s investment returns are used to support the annual costs of operating the school. The majority of Bridgton’s endowments are restricted for particular purposes established by their donors.
If you would like to talk to Bridgton Academy about creating a lasting gift through the creation of your own endowment, please contact Jessica Priola in the Development Office at (207) 647-3322, ext. 1219 or email firstname.lastname@example.org. In addition, you are welcome to fill out our Endowment Planning Worksheet, to help provide us with information about your potential gift.
What is an Endowed Fund at Bridgton Academy?
Endowment Funds are funds created where the principle value of the gift is invested in perpetuity. A portion of the earnings from the endowment are used on an annual basis to fund the specified purpose of the endowment. It is important for donors to understand that the endowment fund will not be used until it reaches a minimum principle value to support its expenses. Bridgton Academy’s endowment is managed by the Board of Trustees Investment Committee in conjunction with the Business Office. Bridgton Academy’s Endowment is invested within the CommonFund, a large investment company that manages over $24 billion dollars in investments for over 1,500 nonprofit organizations.
When establishing an endowment, donors are able to define criteria for their award. These restricted conditions may be as simple or directed as the donor desires. Donors are also asked to name their endowment, as well as provide a brief summary of the donor or honoree of the fund. Modifications to this fund may not be made without a formal modification agreement approved by Bridgton Academy.
What is the Minimum Requirement to Establish an Endowment at Bridgton Academy?
The minimum principle value for establishing a named endowment at Bridgton Academy is $25,000. If contributions will be spread over multiple payments, a donor may have up to five years to fund their endowment. If, after five years, an endowment is not fully funded at the minimum value, Bridgton Academy maintains the right to re-categorize the fund as unrestricted, and combine the endowment with other existing funds that are used at the discretion of the Board of Trustees.
An endowment agreement worksheet must be signed by the donor, clearly stating the commitment amount, contribution schedule, and any donor restrictions on the fund.
How Does My Endowment Work?
Once your endowment has achieved its minimum principle value, Bridgton Academy is able to begin awarding your fund. Spending allowances are calculated annually based on the Board of Trustees spending formula. Currently, the spending formula is 4 ½% of the trailing 3-year average of the endowment’s fair market value calculated as of December 31st of each year.
To be eligible for distribution, at the time of the spending allowance calculation the endowment’s most recent calendar year-end fair market value must exceed its donated principal value. Endowment principles funded at the $25,000 minimum value requirement, need to be at or above $25,000 at the most recent calendar year-end to be eligible for the spending formula draw.
How is my Endowment Stewarded?
Bridgton Academy will provide the endowed fund’s primary contact with an annual report of market activity. In addition, funds that support scholarship or awards will receive periodic updates from both the student recipient, as well as the Development Office. Prompt tax receipt of all contributions to the fund will be provided directly to the donor(s). Endowed funds are listed on Bridgton Academy’s website, and donors are recognized in the Academy’s Annual Report on Giving. The Development Office will periodically check in with endowment funders to determine that all funding goals and needs are being met.
How Do I Grow My Endowment?
Your fund should grow over time as the market reports earnings. We also encourage donors to continue to grow their fund principal, as growth of their fund will result in additional earnings for their award, scholarship, or otherwise designated fund. Gifts of cash and securities are the most common giving vehicles, but donors are welcome to discuss additional giving options and planned gifts with the Development Office.