Why do you need more money?
Many people reach out to us throughout the year asking this question.
“You already have over one million dollars, why don’t you spend that money before asking for more?”
YES! We do have a very healthy million-dollar balance in The PBL Endowment Fund.* HOWEVER, this money is not in our general fund but in a separate investment fund that has policies regarding investing, spending and receiving gifts. Policies we are obligated to follow.
Here are some of the key spending (policy) criteria we hope will answer the “million-dollar question” for you.
* The principal (total value of all gifts placed in The Fund) shall not be expended.
* If The Fund balance falls below the principal level (the total gift balance) distributions will be suspended until The Fund balance returns to the principal level.
* The Paxton-Buckley-Loda Education Foundation Endowment Committee may distribute to The Foundation up to 5% net, after fees, of a five (5) year rolling average of the total market value of the endowment account, as valued on the last open market day of June. Within the first five (5) years of The Fund’s existence, the average will be based on the number of years The Fund has existed.
While our annual fundraisers provide critical funding for programs like our bookfair coupons, the amount raised from one year to the next can differ quite a bit. The rationale behind the creation of The PBL Endowment Fund was to ensure a more reliable source of income. The creation of The PBL Endowment Fund allows us to accomplish this goal, as we will not spend the principal. And year after year, we will be assured of income gained on this investment that will be distributed to our schools. We WANT MORE MONEY because as the principal grows larger, so will the amount of invested income we can distribute to our schools.
Strong schools = Strong communities
In a nutshell, this is why we will continue to raise money for the PBL Endowment Fund. Doing what we can to ensure our students and staff will “have the tools they need to become the best they can be.” As we continually work towards this goal, we will have communities where people want to live and raise their family; where existing businesses will have customers and educated potential employees, and new businesses may want to start up or locate in one of our communities.
Robin Niewold, Chairman
* The Paxton-Buckey-Loda Endowment Fund is managed for us by Frederick Community Wealth Management.
** To receive a complete copy of all PBL Endowment Fund Policies email: secretary@pblfoundation.org or call Lisa at 217-379-4715.