|Posted on January 21, 2017 at 5:30 PM|
The 15-month Challenge Grant awarded to the Foundation by the JEM Fund closed on December 31, 2016. We are pleased to report that due to the spectacular support of our donors we raised $141,000 that will be matched dollar for dollar. This means a net increase of $282,000 for Ma-He-Tu’s endowment fund, and represents 94% of the maximum amount that was possible, far exceeding our expectations.
When the matching funds are received the endowment will have $371,000 in assets. We are still two years away from the conclusion of our initial $500,000 Cornerstone Campaign, but the successful beginning means that we can make a distribution plan for the endowment that our donors deserve to know about. On January 14 the Foundation Board of Directors (which includes an appointee of Lutheran Girls Camp Association (LGCA), which operates Ma-He-Tu) unanimously approved a plan that contains the following highlights:
- The ultimate goal of the Foundation is to create a $1,000,00 endowment fund that can make regular, annual distributions to LGCA at an industry-recommended level (currently, 4% or $40,000 per year.)
- Until the initial Cornerstone Campaign goal of $500,000 is reached, the Foundation will maintain a small emergency fund in case LGCA experiences a financial crisis. Otherwise, all interest and capital gains will be turned back into the endowment fund.
- Between $500,000 and $1,000,000, the Foundation will distribute up to 3% of assets if LGCA operating funds fall below a certain level. (LGCA currently has over five times the assets that would trigger a distribution.)
This plan will keep the endowment growing until the $1 million goal is reached, and stable through good times and bad. Obviously, to reach that goal sooner rather than later we will continue to need donations. But now is the time to say THANK YOU. Thank you to all who have supported us these past three years, whose generosity and love of Ma-He-Tu and Trexler have made the dream of an endowment fund a reality. God bless you!