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Class reunions present an opportunity for alumni to give back to their schools. Whether it is K to 12, higher education or a specialty school, individuals can create long-term endowments that will benefit their schools.

The goal is to engage each graduating class to create a long-term endowment.
The purpose is to build alumni giving and to use compound interest to allow each class to donate large sums of money to the school/college endowment. (Hereafter called school.)

This is a partial set-aside approach. We assume that each class will give other gifts for immediate use. This is designed to only be a portion of the total giving.

Inputs

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• Assume that each graduating class, as part of the graduation gift, raises $1,000 for the long-term fund. Assume that the school matches it. The beginning balance is $2,000.
• Assume that for the 10th reunion, as part of the 10th anniversary gift, each class raises a new $2,500 for the long-term fund. The school matches it. A new $5,000 is added to the long-term fund.
• Assume that for the 25th reunion, as part of the anniversary gift, each class raises a new $5,000 for the long-term fund. The school matches it. A new $10,000 is added to the long-term fund.

The money is invested by the school. The principal grows untouched.

Withdrawals

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• At the 50th reunion, one third of the accumulated principal is transferred to the regular endowment, and the school may begin spending an assumed 5% per year for school expenditures.
• 25 years later (year 75), one half of the remaining principal is transferred to the regular endowment, and the school may begin spending an assumed 5% per year for school expenses.
• 50 years later (year 100), all the remaining principal is transferred to the regular endowment, and the school may begin spending an assumed 5% per year for school expenses.

The Potential

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Initial Investment: $2,000 at graduation… $5,000 for the 10th anniversary… $10,000 for the 25th anniversary

Years	Accumulated Principal	Transfer To Regular Endowment
By the 50th Reunion	$257,791	1/3 = $85,071
25 years later (Year 75)	$2,305,057	1/2 = $1,152,528
25 years later (100 Years)	$23,945,220	All = $23,945,220

Years	Accumulated Principal	Transfer To Regular Endowment
By the 50th Reunion	$371,906	1/3 = $122,729
25 years later (Year 75)	$4,177,892	1/2 = $2,088,946
25 years later (100 Years)	$52,552,126	All = $52,552,126