Many NYC Private Schools operate successfully on a combination of tuition and endowments. A financial endowment is a transfer of money or property donated to an institution. This is usually done with the stipulation that it be invested, and the principal remain intact in perpetuity or for a defined time period. This allows for the donation to have a much greater impact over a longer period of time than if it were spent all at once.
Every school needs endowment funds, however they are generally not a not part of the school’s regular operating budget. These are funds which can be used to fill in the inevitable gaps and shortfalls which every school faces, at one time or another, in its financial operations.
The Largest Private School Endowments
It is commonly supposed that the school which holds the largest endowment is The Kamehameha Schools in Honolulu, Hawaii. Years ago Princess Bernice Pauahi Bishop, the great-granddaughter and last royal descendant of Kamehameha the Great, understood that the future of all children lay in education. Her dream was that every Hawaiian child would receive a first class education, and so she joined others to create an endowment for the Kamehameha Schools. In 2005, Kamehameha Schools had a reported endowment of approximately $6.8 billion.
Endowments that focus on a specific academic professorship or endeavor are the most common type, as are fellowship and scholarship endowments. Utilized in this way, the donor can ensure the continuous survival of a specific element that is of particular meaning to the donor.
Endowments during financial downturns:
Financial downturns such as the current recession can cause a heavy blow to even well-managed endowments, which is why continued support from families and alumni can make a such as difference in NYC Private Schools.
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