The endowment is an important component in building a mature business plan for our young school. In addition to traditional sources of income like revenue from earned sources (primarily tuition) and contributions (the MCDS Annual Fund), invested income (or the endowment) is designed to support important school priorities that enhance the MCDS experience.
The endowment plays an essential role in providing financial support and stability in order to further the school’s mission. It helps ensure MCDS’ future by preserving and enhancing the real, inflation-adjusted value of the endowment through prudent investments and strong oversight. As a result, the endowment will provide a steady, stable and predictable stream of earnings to allow planning for Madison Country Day School.
The endowment balance as of June 30, 2022 was $393,945. Our endowment currently plays no role in balancing the MCDS budget. Over the next decade, MCDS will pursue support that will cover 5% of the school’s budget.
The Madison Country Day School Board of Trustees oversees the investment and growth of the school’s endowment.
The Board of Trustees develops and approves investment policies and guidelines for money managers to follow. As the endowment grows they will also carefully monitor performance against established benchmarks. This deeply engaged group of MCDS leadership is supported by the school’s development staff.
The primary investment goal of the Trustees is that the endowment earn an annual average return that exceeds its spending policy. This financial objective is intended to balance the school’s future needs.
When the endowment is fully vested, the Trustees will approve an annual maximum contribution from the endowment. Currently the guideline is 5% of the average market value of the twelve previous quarters.
Earnings from the endowment will be used exclusively to support school priorities as directed by our strategic plan including professional development, faculty compensation, and scholarships.
As a young school we are a tuition-driven institution; just 9% of our budget is balanced by the Annual Fund. In the twenty-first century, all independent schools will need to move from this model to one that is better balanced by tuition, annual contributions and the endowment. We will reinforce our commitment to fiscal strength by building significant endowment income over the next decade.
The endowment will contribute significantly to the richness of the school’s mission. Endowment earnings from unrestricted and restricted funds will underwrite faculty compensation and benefits, professional development, and curriculum; all factors that enrich the classroom.
A priority of Madison Country Day School is to establish a ratio of endowment to operating budget in order to provide a larger, permanent, predictable source of funding for its growth.
You can designate your contribution to the endowment or you can plan a gift through your estate. Naming opportunities are available at appropriate giving levels for an array of funding needs. Whether by a present or deferred gift, participating in the school’s endowment offers a way to dedicate one’s belief in this exceptional education for current and future students at MCDS.
