Endowment Information

Central's Endowment as of June 30, 2007: $82,134,254

An endowment refers to a permanent financial resource that is invested for long-term growth and provides an annual stream of income. By law, only the income and related gains from endowment funds may be spent; the principal remains intact.

The endowment is invested for the long term, unlike expendable funds, such as The Central Fund, which are typically used for immediate needs. Each year, Central’s board of trustees approves a payout rate for the endowment, which determines the amount of income that flows into Central’s budget. Any remaining income and appreciation is reinvested to preserve the long-term value of the endowment for future generations.

Growing the endowment by $2,500,000 annually over the next five years is a priority in The Campaign for Central Phase II. Central's board of trustees is committed to increasing the endowment to $100,000,000 by 2014. The goal to increase the endowment to $100,000,000 in the next ten years would give a significant boost to the support for the operating fund even allowing for a reduction in the spending rate.

The goal of a large endowment isn’t only to reduce the dependency on tuition and fees. It also provides funds for capital expenses; helps cash flow, and the opportunity to invest more creatively.

Institutions with larger endowments have more opportunity.
There is clearly a break point between endowment categories.
With a large endowment you can have a long-term view.
We need to grow the endowment up to where it will sustain itself and not have an impact on the operational budget and cash flow.
We are in a necessary growth mode to eliminate pressure on the budget and tuition.

Endowed funds may be unrestricted, which means they can be used wherever the need is greatest, or they may be designated for a scholarship, faculty position or program. Central offers the following gift levels to create an endowed fund:

Endowed Scholarships — $25,000 Minimum
As the value of a Central degree has increased over the years, so has its cost. Central is committed to keeping the doors of opportunity open and making education affordable to all who qualify. An endowed scholarship can be donated as a lump sum, pledged over several years, or as part of a planned gift. Endowments which are not yet fully-funded can be accompanied by current gifts to allow the scholarship to be awarded for the next academic year.

Scenes from Central's annual Scholarship Recognition Dinner, where donors and students have a chance to meet. The dinner is held in the spring.

Professorships — $500,000
A professorship is a special way of recognizing current faculty members of exceptional ability and stature. It enables Central to attract distinguished professors who can expand possibilities, for both students and colleagues within various departments. They make a clear difference in the quality of teaching and scholarship.

Faculty Chair — $1,000,000
Perhaps the most powerful academic gift, the endowed chair can bear the name of the donor or a person honored by the donor. The donor works with the college to determine the criteria for selecting the faculty or staff member to be honored with the chair. Endowed chairs are critical to the college’s ability to attract and retain outstanding faculty and staff in a highly competitive environment.

Any of the following can be used to create an endowment:

Outright gifts of cash or property
Bequest
Residual interest of a charitable remainder trust
Residual interest when the donor retains use of a principal residence or other property
Death proceeds or cash value of life insurance
Gift element of a gift annuity
Proceeds received at maturity of a stripped bond
Retirement funds designated for the charity

Central is a special place that cares about people and equips students and faculty to make a difference in the world. Through our gifts to the endowment, we can leave a legacy that continues to benefit students for generations to come.

Interested in making a gift? Look at the information on ways to give.