Endowment Management Policy: Legacy Fund (GOV-423)

Established to ensure prudent management of the Legacy Fund, safeguarding its long-term sustainability while supporting the school’s mission.

1. Fund Purpose

The Legacy Fund helps to secure the school’s long-term stability and financial resilience. The Fund is expected to be held in perpetuity, with a portion to be allocated annually to operations. The Fund helps to:

• Support essential operating expenses.

• Maintain affordable tuition through meaningful financial aid.

• Weather economic challenges.

• Preserve the school’s values, culture, and legacy for future generations.

2. Gift Acceptance

• Contributions to the Fund shall be irrevocable and not subject to any donor-imposed restrictions.

• Contributions are subject to the school’s charitable gift acceptance policies, if any, and to review by the Board of Trustees.

3. Investment

• Funds shall be managed by the Board’s Investment Committee (GOV-610).

• Funds shall be managed in accord with Board policies related to investments (such as this policy and GOV-420 Investment Accounts).

• Fund assets may be pooled with other assets.

4. Distributions

• Authority

  • Only the Board of Trustees may authorize distributions from the Fund. 

  • The Board shall determine the amount and use of each distribution.

• Ordinary Distributions

  • Ordinary distributions may begin once the Fund reaches $1,000,000 or on July 1, 2035, whichever occurs first (“Distribution Threshold”).

  • Before the Distribution Threshold is reached, income and capital appreciation shall be reinvested to grow the principal.

  • The sum of distributions in any fiscal year shall be between 2% and 7% of the average market value of the Fund at the end of each of the last three fiscal years.

• Extraordinary Distributions

  • Notwithstanding other policy provisions, extraordinary distributions (a) exceeding 7% or (b) occurring before the Distribution Threshold is reached may be made to the minimum extent necessary under extraordinary circumstances as determined by the Board of Trustees. Extraordinary distributions shall require approval by a two-thirds majority of the Board of Trustees, and shall be accompanied by a statement of necessity.

• Considerations

  • In determining distribution amounts and uses, the Board shall take into account the Fund’s earnings, economic conditions, extraordinary needs, strategic plans, and the goal of maintaining principal.

5. Recognition of Donors

• Donors will be thanked promptly in a meaningful way.

• The school may recognize donors privately and/or publicly, and donors shall be given the option to remain anonymous.

• The Board may establish named sub-funds within the Fund to honor major donors.

6. Reporting

• The official or committee responsible for managing the Fund shall annually submit to the Board of Trustees a report on the Fund’s performance, including beginning and ending balances, investment returns, fees, and distributions.

• The Board of Trustees shall annually submit a report on the Fund to Fund donors and/or the Annual Meeting, including a summary of impact on the school’s mission.

7. Amendments

• The Board of Trustees may amend this policy from time to time with a two-thirds majority vote.