What is an Endowment?
An endowment is a restricted fund. Only the interest/income from the fund can be spent, not the principal. As the principal grows, through contributions and investment capital growth, the amount paid out for program support grows. A portion of the interest or earnings from the endowment is spent annually to make sure that the original funds grow over time. Professional money managers oversee the CHSF endowment funds, investing the money in a balanced portfolio. We usually disburse between 4.5% and 5%, maintaining a moderate position.
What Are the Advantages to an Endowment?
Nonprofits often think only about the current fiscal year and are constantly uncertain about their ability to pay for future programs. The endowment reduces our vulnerability to economic crisis and ensures the continuation of our organization's ability to fund our programs. Contributing to an endowment means that you have the option of giving a gift in perpetuity.
The principal difference between our two programs is the scholarship program provides funds for graduating students to help defray their post-secondary education and training costs and the RSEPP supports students in grades 9 through 11 by funding programs that help the students prepare for their post-secondary education and training.