Program for School Endowment Funds FAQ's
What is an endowment?
Endowment funds are a vehicle for long-term support of an organization or issue. In an endowment fund, the principle always remains intact and only income from the fund is spent.
Why should my school district create an endowment fund at the Scioto Foundation?
There are many benefits to creating a school endowment fund at the Scioto Foundation. Through earnings from an endowment fund, a school district can provide:
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scholarships to graduating seniors to defray the rising costs of higher education
stipends to teachers for professional development activities
financial assistance for students (K-12) to attend special programs
support for special projects needed in the education of youth
help with financing extra-curricular activities, and
many other important educational activities
What are the benefits of having an endowment at the Scioto Foundation?
The Foundation can help your school develop a planned giving program to attract contributors or donors; and/or your district may choose to support its endowment fund through a small contribution each year from its general fund. Through ORC 3315.41 a
school district can appoint a nonprofit foundation that is exempt from income tax under section 501 (a) of the Internal Revenue Code of 1986, to administer its endowment fund or trust. The Scioto Foundation can assist with investment management and administrative details. The Scioto Foundation's economy of scale provides your school the benefits of a diverse investment portfolio with low investment fees that typically come only with large funds.
Donors can leave a bequest through the Scioto Foundation to benefit your school forever and create a personal legacy. The Scioto Foundation can facilitate even the most complex planned gifts or gifts of appreciated stock or real estate. We handle investment management and the administrative responsibilities related to endowment so that your school district can concentrate in fulfilling its mission.
What types of endowments can my school district create?
Schools can choose to create endowed scholarship funds, or other restricted funds for a certain use or purpose such as providing for arts and music education, extracurricular activities, and professional development activities, etc.
The Scioto Foundation's Program for Organizational Endowment Making (POEM) is a program to assist groups in building permanent endowment funds.
Can my school district participate?
Yes. Organizations qualify to participate in POEM by establishing an endowment fund with the Scioto Foundation and then attending training sessions and other special endowment building projects offered through the Foundation.
Who can participate in POEM?
When established in 2004, the Scioto Foundation envisioned that 501 (c) 3 nonprofit organizations would be the exclusive participants. However, as POEM has grown, the Scioto Foundation has welcomed the participation of civic groups such as the Portsmouth Kiwanis Club, alumni associations such as Clay and Northwest High Schools, and school districts such as Bloom-Vernon Local Schools.
Is there a minimum amount required to create a fund?
No. However, for funds that are established under $10,000, the Scioto Foundation will establish an Acorn Fund. Acorn Funds are a vehicle of creating permanent endowment funds in installments. Typically, the organization or donor gives a minimum of $1,000 per year until a goal of $5,000 or $10,000 is reached. During this time, the Scioto Foundation waives its fee. Once the goal amount is reached, distributions from the fund can be made.
How does the Scioto Foundation assist groups to build their endowment?
The Scioto Foundation offers a variety of products and services to assist groups in building their endowment funds. The Foundation offers two training programs per year from an expert in the field of fundraising. Past programs include Planned Giving Basics and Creating a Bequest Program. The Scioto Foundation also offers planning and one-on-one consulting services to POEM participants as well as marketing materials. Finally, the Scioto Foundation has offered a matching grants program to POEM participants. Since 2004, the Scioto Foundation has awarded over $50,000 in matching grants to the endowment funds of POEM participants.
What does it cost to participate?
The Scioto Foundation assesses a small fee on all of its endowment funds. It is then used to offer products and services to our participants.
Want to learn more?
Contact:
Kim Cutlip, Executive Director
Scioto Foundation
P.O. Box 911
Portsmouth, Ohio 45662
740-354-4612 or toll free
1-866-774-7223
kim.sciotofoundation@verizon.net