The endowment fund is designed to ensure the long term stability of the school. The principal of this fund, usually major gifts, are invested to produce income on a yearly basis thus supporting operations of the school and controlling tuition costs. The principal of this investment remains untouched. The proceeds from a healthy endowment will allow the school to keep tuition affordable, meet operational expenses, and pay teachers a reasonable wage. The establishment and giving to an endowment fund is considered to be the most fiscally sound way to contribute to the long term stability and effectiveness of West Woods Christian Academy.
How does an endowment fund benefit students and families at WWCA?
When an endowment fund produces operational income for the school it benefits the whole school community. Without driving up tuition costs, program additions and improvements can be initiated. If the endowment is regularly growing it could make it possible to lower tuition expenses for those attending.
Tell me more about how and endowment investment might work.
The gift amount invested is considered the principal. The principal of the investment will produce investment income. It is this invested income, not the principal, which would then be put into the school operational budget each year. For example an endowment of five million dollars invested at a moderate rate could produce income of $250,000. It would be this income amount that would be put into school operational expenses without decreasing the original principal. This would allow programs to be funded without the increasing of tuition expense.
Who would be responsible for overseeing the endowment fund?
West Woods Christian Academy has appointed trustees who are responsible for the long term stability and viability of the school. In addition the School Board operates under the guidance of West Woods Bible Chapel elders. The endowment fund would be held in a trust for West Woods Christian Academy.
What is the endowment goal for West Woods Christian Academy?
While we would not want to limit God in any way, the original goal that could substantially assist the school operations is five to seven million dollars. This would immediately assist with the control of tuition expense, long term stabilization of operations, and program improvements for students and families.
How do I give to the endowment fund?
All gifts to the endowment fund are tax deductible and can be written to West Woods Christian Academy. Our mailing address is WWCA 2105 State Street, Hamden, CT. O6517. If you have further questions, feel free to call 203-562-9922. Please ask to speak with William Kane, Principal.