Endowment Builders

Membership in the Endowment Builders is based upon a donor’s stated desire to establish at Rhodes an endowed fund of at least $50,000, coupled with a specified minimum contribution to establish the fund. Unlike normal gifts to the endowment which yield a 5% income for the college on an annual basis, these gifts will be allowed to grow without any income being withdrawn until the fund reaches the pre-determined endowment level set by the donor. Additional contributions to the fund are permitted at any time to allow for more rapid growth of the fund.

As soon as the fund reaches the pre-determined amount, it will be utilized for whatever purpose the donor has established. This method of giving provides a tax-wise way to make a significant deferred gift to Rhodes. It capitalizes on Rhodes’ excellent record of investment and the college’s status as a tax-exempt organization. By compounding all growth on a tax-exempt basis, the donor’s fund can more rapidly build to a significant amount. Members of the Endowment Builders are ensuring Rhodes′ long-term success by helping to build a future income stream to support essential areas such as student aid, faculty support, and learning resource acquisition. Operational considerations are as follows:

  • Donors choose to participate in the program by determining the size endowment they want to build. When the fund achieves the pre-determined size, it will be activated. The minimum endowment size to be established is $50,000.
  • Donors contribute a minimum amount to establish the fund, depending upon the ultimate size of the fund. The minimum needed is one-fifth of the fund’s ultimate value. For example, the minimum contribution to establish an endowment fund of $100,000 is $20,000, for a $500,000 endowment fund, $100,000 would be required. These minimums could be paid over a maximum of five years.
  • Donors will be able to designate the use of the endowed fund, leave it undetermined, or indicate that the designation will be made at a later date, even as late as when the fund is activated. The purpose of the endowment fund must be approved by the college to meet specific college objectives. Should a donor die before designating a use for his or her fund, then the endowment will be made unrestricted to enable the college to meet its highest priority needs at any given time.
  • All contributions will be invested in the college’s endowment to grow with all market earnings and realized gains reinvested. Investment decisions will be determined by the Investment Committee of the Board of Trustees.
  • For Benefactors’ Circle recognition the college will count the actual gifts plus any growth, only as the growth actually occurs each year.
  • Gifts to this fund must be either cash or securities for which there is a readily accessible and established market.

Revised May 22, 2008.
In effect April 26, 2004.
Vice President for Development.