What is the Annual Fund and why is it important?
Annual Funds are the fundraising method used by most independent schools and colleges in order to balance budgets and keep tuitions as low as possible. U.S. norms are that 8-11% of operating expenses come from annual giving. The Annual Fund ensures continuous school improvement in both academics and physical facilities.
What are the main benefits of annual giving?
Two of the main benefits are that your donation is:
- Tax deductible since we are a 501(c)(3) organization.
- Very important in sustaining the diverse educational opportunities available to Boerne and the Texas Hill Country.
Our goal as a Montessori school is to provide an excellent Montessori program to our community. To accomplish our goals, we must plan for the future growth and development of the program. While tuition is used to provide day-to-day operations, it is not sufficient to cover the costs associated with growth and program development.
What costs so much?
Schools are labor-intensive, relying on quality people to work with and care about our children. Approximately 70% of the budget goes to salaries with 10-15% being allocated for maintenance, heat, light, etc. These are costs that continually escalate and cannot be cut.
I can't afford any more than I'm already paying.
All gifts of any size help. Participation percentage is as important as dollar amount. Additionally, our pledge system allows for payments to spread over a longer time period. A pledge of $150 could be paid much easier in six monthly installments of $25 each.
How much should I give?
Gifts are voluntary and generally range from $100 to $25,000. A long range goal is to have annual giving equal approximately 10% of operating expenses.
What about those parents who donate services and goods throughout the year to volunteer projects?
Everyone is given the opportunity and is encouraged to give to the annual fund. The voluntary contributions of time and goods to the school are essential and very much appreciated, but a finanical commitment is also essential. It is understood and accepted that some families have more flexibility than others and no attempt is made to compare one family's giving with another. However, it is believed that everyone can give something.
What is an endowment fund and do we need one?
An endowment fund is a large sum of money gifted to the school that the school invests. Interest earned from this investment may be used for specific items or activities, but the principal remains intact. The establishment of an endowment fund greatly maximizes the financial security of the school and it is highly recommended to maintain and grow the fund as much as possible.
If I have little cash available, are there other ways to give that would be appropriate?
Donating to your community's school can be fun and mutually beneficial to everyone. Planned giving, annuities, stocks, insurance policies, and deferred gifts are just a few of the creative ways to benefit this school, while enhancing one's own financial position. We would be happy to discuss creative ways of giving.
Are gifts tax deductible?
HCMS is a non-profit 501(c)(3) institution under the federal Internal Revenue Code. Contributions to the school are acknowledged in writing and are deductible to the fullest extent of the law.
Other gift ideas:
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Birthday gifts: for that person who has everything, a gift given in their name to an educational cause may be appreciated.
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Grandparent gifts: grandparents care deeply about the education of their offspring. A grandparent may embrace the opportunity to support their grandchildren's education and get a tax write off as well.
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Clubs and charities: if you are a member of a club or charity, find out if they contribute to educational institutions. Bringing resources to your school is the same as a financial donation.
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Corporate giving: corporations often donate to education. Some organizations contribute through matching funds, volunteer incentive donations, etc. If you work for a corporation that is in a position to contribute, go to the appropriate office and arrange for a contribution to our school.
