What is Endowment?
Bank Street’s endowment of approximately $29 million is a permanent, self-sustaining source of funding. Endowment assets are invested, and each year a portion of the earnings, “endowment draw,” is paid out for operating and program expenses while the rest is used to build the fund’s market value. In this way, an endowment fund can grow and provide support in perpetuity. Capital gifts provide funds to improve Bank Street’s long-term, permanent assets such as major improvements to the facilities and endowment. Capital gifts support Bank Street's strategic goals and provide long-term financial security and flexibility. Examples of capital gifts include gifts for major facilities improvements and gifts to endowment.
A strong endowment benefits Bank Street by providing a secure base of resources, which safeguards against large tuition increases, reduces dependence on specific funding sources, facilitates long-term financial planning and program objectives, and fosters programmatic flexibility and organizational change in working towards those goals. A healthy endowment enables Bank Street to attract and retain top faculty, build innovative programs, enhance diversity, and support student needs.
The School for Children Endowment, which is invested along with all of Bank Street’s endowment funds, is approximately $2.9 million.