The Endowment of the MBEF
“A society grows great when one plants trees in whose shade
they know they shall never sit” ~ Anonymous Greek Proverb
The need for significant private funding for our schools is not going to go away anytime soon. Recognizing this, many years ago MBEF created an Endowment Fund with an initial investment of $10,000. Today, through donations, including a major $1-million gift from Plaza El Segundo partners in 2007, proceeds from our Manhattan Wine Auction and investment gains, our Endowment has grown to approximately $4.6 million (12/09).
The fund follows a prudent, long-term investment strategy overseen by MBEF’s invesment committee, MBEF’s Chief Investment Officer, Rich Weiss, and our Endowment Chair, Sheri Leitzow. Although the last year encompassed the second worst recession and bear market in US history, our investment portfolio performed relatively well compared to relevant investment and competitive benchmarks.
A portion of the the proceeds from the Endowment may be used once the Endowment reaches $10 million. This revenue will provide an additional source of funding for our school programs and lessen MBEF’s dependence on annual fundraising. Anyone can give to MBEF’s Endowment to make a long-term investment in the quality of our public schools and our children’s futures. Gifts can come in many sizes and forms, such as current or planned giving. For more information on ways to give to the Endowment, please contact Ms.Lietzow at slietzow@verizon.net.
Why do we need an Endowment Fund?
What is the current status of the Endowment Fund?
When does MBEF expect to use income from the Endowment Fund?
How do I know the Endowment money is being invested wisely?
Who is the Endowment Investment Committee?
Are my donations tax-deductible?
I have further questions
Who can give to the MBEF Endowment and how?
We invite our alumni, friends and neighbors to partner with us in providing an educational experience that will help our students realize their own capacities to the fullest. You are investing in an exciting legacy of discovery, creativity and leadership.
An endowment gift is one where the principal donation is maintained in perpetuity and only a portion of the annual investment return is spent. Surplus earnings are reinvested in the endowment so that over the years, the fund can grow and provide long-term financial security.
Gifts of cash, securities or other property provide the Endowment with immediate financial assistance.
A pledge is a formal statement to make a gift to the MBEF Endowment Fund. Many donors choose to complete their pledge by making regular payments over a period of time. This method allows donors to give more generously than they might have originally considered. We encourage payment of pledges within five years of the original commitment, with the exception of gifts through wills and estate plans.
Many corporations encourage employee philanthropy by matching or multiplying their employees’ gifts to the Endowment. Before you make a gift, you may want to ask whether your employer participate in such a program.
Gifts Through Your Will or Estate Plan One of the easiest and most common ways to give is through a gift in your will or living trust. Your gift may be made in your name or to memorialize a loved one. You may choose to leave a specific dollar amount, a particular piece of real or personal property, a percentage of the estate, all or a portion of the residue of the estate following the satisfaction of other bequests, or a combination of the above. When you decide to remember The MBEF Endowment in your will, please notify our MBEF Executive Director and Endowment Chair.
Why do we need an Endowment Fund? The Endowment Fund will allow MBEF to provide a more secure source of long-term funding for enhanced educational programs and activities, while lessening the Foundation’s dependence on annual fundraising.
Currently, MBEF is charged with raising about $4 million each year to support existing school programs. While the annual appeal has historically reached its goal – and sometimes surpassed it – virtually all of the money raised in a year gets spent in the following year, and then the process must begin again. The success of this annual fundraising effort is dependent upon the generosity of our donors, our ability to attract volunteers, the state of the economy, immediate school and community issues, and other factors sometimes beyond the control of MBEF.
What is the current status of the Endowment Fund? Formally created in 1991, the Endowment Fund has grown to approximately $4 million as of September 2009. For the 6 months ending June 30,2009, the Endowment investment portfolio has achieved a total return of 5 percent.
When does MBEF expect to use income from the Endowment Fund? The MBEF has established an initial fundraising target for the Endowment of $10 million; currently the Endowment balance is approximately $4 million. Funds may not be transferred out of the Endowment Fund until such time as the Endowment fund balance exceeds $10 million. After that, MBEF will use only the income from the investments (subject to certain limitations in our bylaws).
How do I know the Endowment money is being invested wisely? Consistent with the MBEF’s Investment Policy Statement, which sets forth the specific investment guidelines, the Endowment Fund is invested across a well-diversified portfolio of investments. Since the implementation of this Investment Policy in early 2005, the Endowment portfolio has managed to show a healthy gain despite the recession and recent bear market.
Who is the Endowment Investment Committee? The MBEF Investment Committee is comprised of MBEF’s Chief Investment Officer, the Treasurer, the Endowment Chair, at least two additional Directors, and such other persons as may be appointed by the MBEF Board of Directors.
Are my donations tax-deductible?
The Manhattan Beach Education Foundation is a California non-profit, public benefit, corporation under Section 501(c) (3) of the Internal Revenue Code. The federal tax ID number for the Foundation is 95-3881166. All donations are tax-deductible to the extent allowed by law.