The outstanding education that Newman offers is becoming more expensive. We are challenged to keep tuition at levels which are affordable, while at the same time expanding funds to attract the best and brightest students and teachers to the School. Our answer to these financial challenges is to focus on the long term. We must build a strong financial base to secure the future of Newman by substantially increasing the size of Newman’s endowment.
The term “endowment” is used to describe funds that are set aside for the long-term benefit of the School. For a family, it might be called a savings or investment account.
The School’s endowment has funds that are directed by their donors for three main purposes: for students (financial aid for tuition), for faculty (to enhance salaries or to offer professional development opportunities) and for programs (to contribute to the ongoing expenses of a particular program or department). About 30% of the endowment is unrestricted and is used for the general operation of the School. A percentage of the endowment is used each year to supplement the operating budget. Without a strong endowment, tuition would need to be much greater.
The endowment value is currently $35.7M. All of the School’s endowment funds are managed together by professional, outside advisors. An investment committee of volunteers oversees the professional advisors for the endowment, and the Board of Governors establishes the policies that relate to it. Newman is fortunate to have had excellent advice and in each of the last three years, the endowment has grown at a rate that exceeds most of the comparison funds. Currently, the Board policy says that 5% of the principal of the endowment fund can be taken each year for the purpose for which the fund was established.
The School’s endowment has grown by gifts from families and friends and strong investment growth. There are a number of funds that have been established to honor family and friends. Ongoing gifts to the endowment are essential to secure the School for the future.