Building a lasting legacy is about much more than assets.
It’s about your unique values and what kind of mark you want to leave on the world.
In our busy lives, the vital need to plan for the future can often take a backseat. Estate planning is something we know we should do, have great intentions of doing, and, yet, most of us are lucky if we even have a will.
So, ask yourself, what kind of legacy will you leave behind and how important is it to you?
At Franklin Road Academy, we know that you have three primary concerns as you embark on the planning process.
We call them the three L’s of estate planning.
• Life after work –
This is the L for your own retirement.
Do I have enough money to live on the rest of my life?
• Loved ones –
This is the L for your children and grandchildren.
Will my heirs be taken care of when I’m gone?
• Legacy –
This is the L that reflects your values and defines your moral impact.
Will I have enough left over for the charities I hold most dear?
We understand that these are the big three issues on your mind as you plan for your financial future. As an FRA Planned Giving participant, you may or may not choose to include a gift for FRA. But, if you decide to include FRA in your plan, the best type of planned gift is to the FRA Endowment. It is truly the gift that keeps on giving.
An endowment is a measure of quality in the realm of education. Moving into the highest ranks of independent schools is a compelling vision, but not an impossible dream. Endowment growth is essential to this goal.
What is an endowment?
Some people think of an endowment as a savings account, but this is a misconception. With a savings account, you can dip into funds and use both the principle and the interest on the account. A better analogy for an endowment is a trust fund. With an endowment, the principle always remains intact and cannot be touched. Only the interest and earnings from the endowment principle may be used. So, as you can see, a larger endowment yields larger earnings. And, endowment earnings are typically earmarked to fund scholarships, salaries, development, technology and other priorities as the need arises, making an endowment vital to the strategic goals of any academic institution.
As a rule of thumb, the endowment should be 2.5 times our annual operating budget. This would put FRA’s long-term endowment goal at approximately $40 million.
FRA endowment opportunities
There are two primary classifications within FRA’s endowment: restricted and unrestricted. As the donor, you may specify how you prefer your gift to be classified and used by the academy. Restricted gifts require a $50,000 minimum donation, but this threshold may be met through the coordination of gifts from multiple families.
Unrestricted: FRA General Endowment
FRA’s general endowment includes funds that are not earmarked to a particular spending category. This is the most common classification and the one preferred by the academy, for obvious reasons. Growth of the general endowment provides the greatest flexibility to the academy to fund needs as they arise, especially those deemed most vital to our strategic vision and current circumstances. As such, FRA’s Board of Trustees manages all spending out of the general endowment.
Restricted Endowment
FRA has several restricted endowment opportunities that may be donor-specified. FRA’s Board of Trustees evaluates and approves new restricted funds, as they are proposed by school administration, board members or a donor. The following FRA restricted endowment funds are currently in place:
Tuition Assistance
For need-based financial assistance
Merit-Based Scholarships
For merit-based financial assistance based on academic skills and potential
Faculty Professional Development
For faculty pursuing advanced degrees, attending conferences or summer study here and abroad
Technology
For software and hardware upgrades and training for faculty and staff
School Programs
For specific areas like Science, English, Arts, History, Athletics or Service Opportunities
Faculty Chairs
For attracting and retaining the best faculty chairs
Campus Preservation and Enhancement
For maintaining and enhancing our campus
New endowments may be added periodically with the review and approval of FRA’s Board of Trustees. For the most up-to-date list of endowment opportunities, please contact Angie Stiff, 369-4633.
“Being in the ‘Financial Advisor’ business, I was very interested to see for myself what value Thompson and Associates could provide. I was very impressed with the manner in which they structured the interview, as well as the explanations of some very difficult estate planning concepts. This was a very valuable exercise for my wife and me to go through together, in order to make sure we are on the same page as far as the distribution of our assets is concerned.”
-- Tom Herbert, Board of Trustees
To Begin with the End in Mind, you must first BEGIN.
We hope you have found this helpful in explaining Franklin Road Academy’s endowment initiatives. We encourage you to start today planning your legacy and maximizing your charitable impact. Our goal at FRA is to support your needs and timetables and to assist you in creating a plan that reflects your values as a donor. Please contact Angie Stiff, Director of Advancement, at 369-4633 or stiffa@franklinroadacademy.com to get started building your lasting legacy today.