With the creation of the Moraga Education Foundation Endowment in 1991, that tree was planted, and today we are seeing the branches extending to create a framework for the shade our children will enjoy in the years to come.
The Endowment saw a rejuvenation of enthusiasm and funding over the last four years and during the 2016-2017 campaign, the initial endowment goal of $1 million was reached. With sustained emphasis, MEF hopes to continue to grow the Endowment Fund to create a long-term stable source of money that will help protect public schools in Moraga from volatility in state funding.
What is the MEF Endowment Fund?
Imagine a day, in the not too distant future, when it would be possible to pay for a significant portion of non‐state funded essential and enrichment programs for students (TK‐12) from a self‐perpetuating source of income ‐ FOREVER. This is the purpose of the MEF Endowment Fund.
How does the Endowment Fund work?
All endowed funds are invested and, after the fund reaches $1,000,000, up to 5% of the endowed fund could be distributed, with Board of Directors' approval each year to support our schools. Only interest, dividends and capital gains earned on principal may be spent. This means a $1 million endowment could pay out as much as $50,000 per year. Earnings that exceed the payout amount are retained in the Endowment Fund to safeguard its purchasing power against inflation, along with acting as a cushion for periods of poor market performance and allowing for modest growth over time.
How is a gift to the Endowment Fund different from an annual gift?
All donations help MEF and the Moraga schools in different ways. Annual gifts are important because they meet present day needs, funding staff and programs in our schools the following school year. By comparison, endowment gifts grow over time to provide a stable source of perpetual income for MEF to support our schools.
How are the funds in the Endowment Fund invested?
Funds are invested in a diversified portfolio of asset categories, including: U.S. equities, non‐U.S. equities, fixed income and cash. The funds are invested in accordance with an asset allocation policy approved by the MEF Board of Directors and managed by the Investment Committee.
How big is the Endowment Fund and what is the goal?
As of June 1, 2017, the Endowment Fund is over $1 million. The goal is to reach a sufficiently large size such that the cash distributions to the Moraga schools can represent a meaningful portion of the total funds MEF provides to the schools. The minimum goal is $3,000,000 in value within the next 10‐15 years.