The Parker Endowment
Francis Parker School is one of the finest independent schools in the country. But like all schools, Parker must continually evolve to meet the challenges and opportunities of educating students in the rapidly-changing 21st Century. To ensure that a Parker education is as relevant and stimulating in the future as it is today, we must build a financial endowment for the future. An endowment is a pool of money that, prudently invested, will generate dividends to provide a critical funding source year after year. Increasing Parker's endowment will enable us to offer financial assistance to attract talented students who reflect the diversity of our community. It also will provide significant resources to recruit and recognize outstanding faculty, and to enhance rigorous and innovative programs.
We are committed to growing our endowment. As of June 2013, Parker's endowment stood at $16 million; it is one of the lowest in per student value among premier schools nationally as well as among regional independent schools. Hence, the School relies heavily on tuition to fund its operations. In the 2012-13 year, for example, 91 percent of Parker’s $32.3 million operating budget was derived from tuition. Only 9 percent came from gifts, summer program revenues, and what is an increasingly critical funding source for independent schools of Parker’s caliber: endowment earnings. It is the collective effort of the entire Parker community that will allow the endowment to grow and therefore, provide a meaningful and reliable funding source for the School.
- What is an endowment?
- What does the endowment support?
- What is the size of Parker’s current endowment?
- How does that compare with peer schools?
- What about the annual fund?
- How can I give to endowment?
- Will I still be asked for a gift annually?
- What impact will this change have on tuition?
- Can I still direct my endowment gift?
- How much should I give to endowment?
- How much is required to establish a named endowment fund?
- What are the endowment naming opportunities?
- What if I cannot give a gift to establish a named fund?
- How will I know my current endowment fund total?
- How much income from the endowment is spent each year?
- Who invests and manages the endowment funds?
- I still have questions or want to speak to the Advancement Office. Who should I contact?
- What is an endowment? An endowment is the permanent capital of an institution comprised of gifts given over time. Parker’s endowment provides funding to support and advance the School’s mission and lends fiscal stability to the School.
- What does the endowment support? Income from the endowment directly supports the operating budget and reduces the School’s reliance on tuition. Unrestricted general endowment support provides the School with the greatest flexibility.
- What is the size of Parker’s current endowment? The School's endowment is currently valued at $16 million (as of June 30, 2013).
- How does that compare with peer schools? Parker is at a competitive disadvantage when compared to other "best in California" independent schools and independent schools nationally, both in total endowment and endowment per student.
- What about the annual fund? By vote of the Board of Trustees in October 2011, all gifts made to Parker will be designated to the endowment, unless otherwise specifically designated by the donor for a different purpose. Donors can designate their gifts to the unrestricted general endowment, faculty endowment, financial aid endowment and/or program endowment.
- How can I give to endowment? Gifts may be paid by check, credit card, stock transfers or wire transfer. In addition, transfers of appreciated assets such as real estate, art, etc. are all acceptable means of funding an endowment. Planned gifts and bequests are also encouraged.
- Will I still be asked for a gift annually? Yes! We ask every member of the Parker family to consider a gift to the School each fiscal year. Gifts made during the fiscal year, July through June, will be considered as part of the School's annual giving campaign and are invested in the endowment. Our goal is to have 100-percent participation from our current families and increase participation from our alumni, grandparents, faculty and staff and special community. Collectively, we can build the endowment and ensure Parker's future for the next 100 years.
- What impact will this change have on tuition? While it is likely that there will always be an annual tuition increase, the goal of building the endowment is to keep them as low as possible to ensure our inclusive and diverse community.
- Can I still direct my endowment gift? Yes! Donors can designate their gifts to the unrestricted general endowment, faculty endowment, financial aid endowment and/or program endowment.
- How much should I give to endowment? Any gift amount is welcome. Every gift matters! It is the gifts of many which support students' academic excellence and helps the School provide over $3.5 million in financial assistance to 20 percent of our students.
- How much is required to establish a named endowment fund? Named endowed funds, which add to the power of Parker's growing endowment reflect investment levels of $50,000 and above. Gifts can be paid and pledged for up to five years.
- What are the endowment naming opportunities? There are many naming opportunities, for both physical spaces and endowed funds. Please contact the Advancement Office for more information.
- What if I cannot give a gift to establish a named fund? Every gift makes a difference! Each and every gift can be designated to one of the following areas: unrestricted general endowment, faculty endowment, financial aid endowment and/or program endowment. Contributions to the endowment are the strongest vote of confidence you can make in Parker. These gifts provide a steady, flexible source of income that meets the pressing needs of the School now and in the future.
- How will I know my current endowment fund total? Endowment fund reports are sent to donors annually.
- How much income from the endowment is spent each year? Currently, by vote of the Board of Trustees, Parker spends 3.5 percent of a calendar three year average of the endowment’s value. This conservative spending rate allows the endowment to grow.
- Who invests and manages the endowment funds? The investments are managed by an independent outside financial investment company that is overseen by the Board of Trustees’ Investment Committee.
- I still have questions or want to speak to the Advancement Office. Who should I contact? Parker Advancement Office at (858) 569-7900 or at email@example.com. Thank you in advance for your consideration and support!
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