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Establish an Endowment
What is an Endowment?
An endowment is an investment in the future of Southeastern Illinois College. When you use your charitable gift to establish an endowment, the gift is invested with two goals in mind: to provide spendable income for whatever specific purpose you have designated and to make the principal grow faster than inflation. The original principal (or gift) is never spent, and any investment return over allowed spending and fees is channeled back into the fund to keep it healthy and growing.
What Makes Endowed Giving Different From Annual Giving?
Simply put, annual giving helps support continual operations, while endowed giving creates the building blocks for long-term growth. Many donors who create endowments also participate in annual giving. Both types of giving are critical to the College's success, but an endowment is distinct and unique in its impact on SIC.
Your endowment will be set up in a separate account within the SIC Foundation to carry out the purpose specified in the gift agreement. Endowments are invested long-term in an investment pool overseen by the Investment Committee of the Board of Trustees. At least quarterly, endowments receive interest and market value adjustments based on the actual results of the investment pool, net of investment management fees.
What Can My Endowment Support?
What you choose for your endowment to support is entirely up to you. You may designate your gift for any purpose (including unrestricted) that betters the Southeastern Illinois College and that is acceptable to the College Administration and the SIC Foundation Board of Directors. Depending on what you intend your endowment to support, certain minimum endowment requirements apply.
Why Is A Fund Agreement Needed?
Whenever a gift is restricted by the donor to a particular purpose for which there is not an existing endowment, a fund agreement is created. A fund agreement ensures that the gift will always be used exactly as you intend. The agreement sets out your specific criteria for how the College will utilize your gift and, if you desire, includes background on why this gift is important to the College. The Foundation will assist you with drafting and understanding the fund agreement.
A fund agreement also enables your endowment to be invested and the investment return to be used towards the endowment's purpose. It also sets forth provisions for other requirements such as the support fee.
What Is The Support Fee?
The support fee is currently charged annually at a maximum rate of 1.5% of the endowment value. The support fee will be assessed only if there is sufficient investment return to first fund the following:
1. the spending allocation and
2. an inflation factor reinvested to provide for intergenerational growth.
How Will I Know How My Endowment Is Doing?
Knowing the benefit the College receives year after year as a result of your generous support is one of the keepsakes of the legacy you have created through your endowment. You can also contact the Foundation office (618-252-5400 Ext. 2104) and we can provide you with a current report on a real-time basis and the status of your endowment.