Let’s assume you establish a savings account that grows in value through interest income and you decide to only spend a portion of the interest each year. That is how an endowment works. Endowment funds are invested in the market and will grow depending upon the investment assets.
The LCFEF Endowment is a permanent fund and donations to the endowment are invested in perpetuity. Only a portion of the endowment fund is spent each year. As the endowment grows in the value, annual contributions from the LCFEF Endowment to the school district may grow as well. A group of Trustees (Insert LINK) has fiduciary oversight over these investments and determines how much the LCFEF Endowment will donate to the schools each year.
Invested wisely, the income provided by the LCFEF endowment will grow to keep pace with inflation and will support the schools in times of hardship. In past years, the LCFEF Endowment has been the largest donor to the LCFEF Annual Fund.