What exactly is the Annual Fund?

The Annual Fund is a yearly fundraising campaign that provides unrestricted dollars to the school’s current operating budget.  The fund is used to help fill the gap between what is covered by tuition and what it actually costs to run the school.   Every fall members of the Brookwood community are asked to make a voluntary contribution to the Annual Fund.  The fiscal year operates from July 1 through June 30, and contributions can be made to the Annual Fund at any time during this period.

 

Why doesn’t tuition cover the full cost of operating expenses?

Tuition covers 88 percent of the costs required to operate Brookwood at the level that families have come to expect  -- a school that provides an exceptional education to a variety of students. Alternatives such as increasing tuition or cutting programs are not viable options.  For instance, if Brookwood were to increase tuition to cover the operating budget, the school would outprice itself and not be competitive in the marketplace.  Alternately, cutting programs would diminish the quality of the Brookwood experience.   The Annual Fund enables Brookwood to balance its budget without compromising the quality of the institution. The Annual Fund gives families the opportunity to support the school through tax-deductible donations.

 

What is the goal of this year’s Annual Fund and am I expected to give a certain amount?

Our dollar goal is $550,000, but equally important is participation from all 260 families.  Every year, members of our Annual Fund parent volunteer committee contact every Brookwood family to discuss an Annual Fund gift in the effort to achieve a high level of participation from current families.  A successful Annual Fund, in terms of dollars and participation, is an effective barometer of current parent satisfaction with the institution.  We’re happy to report that Brookwood’s Annual Fund has increased 29% over the past three years with current parent participation remaining strong.

 

Why does tuition increase annually?

Brookwood’s biggest asset, and its largest expense, is people, specifically the faculty.   Competitive salaries and benefits for faculty are essential if Brookwood is to attract and retain the most talented teachers.  Unlike commercial or manufacturing enterprises, Brookwood cannot seek economies of scale (more children in the classroom) or reduce inventories as a means to offset escalating costs.  Health benefits, heating oil, insurance, and food prices all increase annually and a school has few viable means to achieve savings elsewhere.  The Finance Committee of the Board of Trustees works with Tom Murphy, Brookwood’s Director of Finance and Operations, to oversee a tight budget.   We are committed to maintaining the fiscal health of the school while pursuing important objectives identified in the Strategic Plan adopted in 2006.  Tuition must increase each year to allow the school to continue to grow and flourish.

 

I’m hearing a lot about the endowment campaign  -- what is that?

Brookwood’s endowment is a pool of capital that is the financial foundation for the school.  Income from this pool provides a source of dependable income other than tuition.  This relieves pressure on the operating budget and gives the school flexibility to plan for improvements and accommodate unexpected expenditures.  The endowment also serves as a safety net, assuring that Brookwood can weather the storm during economic downturns.

 

I feel I already pay a lot in tuition and I’m being asked to contribute to both the endowment campaign and the Annual Fund. Can I give to just one?

Of course giving to Brookwood is always voluntary. Our goal is to maintain a strong Annual Fund while raising additional contributions to the endowment campaign.   The dollars raised through Brookwood’s Annual Fund are essential as they go directly to this year’s operating budget.  With more endowment dollars, Brookwood will be more competitive in recruiting and retaining faculty and offering more financial aid to qualified students who demonstrate need. A successful Annual Fund combined with a sound endowment campaign will ultimately make Brookwood an even stronger institution.

 

Why should I give to endowment if my child is graduating soon?

Brookwood is the result of the founders’ vision and the generosity of countless Brookwood parents and community members over the past fifty years.   Today’s students benefit from the cumulative effect of that generosity.  Your support of and participation in this endowment campaign will help ensure that Brookwood School continues to serve this generation and future generations of students.  

 

What was Brookwood’s endowment before the start of this current campaign?

As of June 30, 2006, Brookwood’s endowment was valued at $3,446,762.  The initial phase of the campaign, headed up by current parents Sam Byrne and Nancy Crate, was extremely successful and raised the value of our endowment to $6,048,409 as of December 31, 2007.   Cash, pledges and planned gifts to the campaign, which was officially announced at the 50^th Anniversary celebration on November 10, 2007, total $8,028,900 to date. 

 

How is Brookwood’s endowment invested?

Brookwood’s endowment, like many independent schools’ endowments, is invested in The Common Fund which has 1,800 not-for-profit clients and over $40 billion under management.  Since 1992, the investment return on Brookwood’s endowment has averaged 8.32% annually.  Over this same period, an average of approximately 4.5% of the endowment’s principal value has been contributed to the operating budget each year.  The Investment Committee of the Board of Trustees and Brookwood’s Director of Finance and Operations carefully monitor the investments and take appropriate actions pursuant to the investment policies approved by the Board.

 

I’d like to support the endowment campaign but I won’t be making a huge contribution.  Will my gift make that much of a difference?

What makes endowment dollars powerful is that an initial donation, whatever the size, becomes more valuable over time.   Consider for example a $1,500 gift.  Using the current 8% rate of return, after ten years that gift will be worth $3,238, after twenty-five years $10,273, and after fifty years $70,352.  A gift of $3,000 would be worth $6,477 after ten years, $20,545 after twenty-five years, and $140,705 after fifty years.  So the old adage “every gift matters” really is true. Additionally, high participation very often yields a successful campaign.   So yes, your gift, no matter what the size, is critical to the success of this important campaign.

 

Should you have additional questions about the Annual Fund or the endowment campaign, please feel free to contact , or  in the Advancement Office.