Yale University - The Class of 1961 Fiftieth Reunion Project

During 2002, Sam Beard raised $680,000 from 43 classmates to create the "Yale University - Class of 1961 Long-Term Endowment Fund" as part of their 50th reunion gift upcoming in 2011. The money is being invested by Yale. The clock will begin in 2011. Assume the $680,000 will grow to $1 million by 2011. The money will be invested untouched for 25 years. Then one third of the principal will be transferred to the regular endowment. The remaining capital will be invested untouched over the next 25 years. One third of the original principal will be invested for the full 100 years.

Assume After 25 Years After 50 Years After 100 Years
$1,000,000 by 2011 2036 2061 2111
At 8% Compound $6,848,475 $31,267,740 $733,253,721
Transfer $2,282,825 (1/3) $15,633,870 (1/2) $733,253,721
To Regular Endowment      

The National Development Council (NDC)
In 2005, the Board of the National Development Council, one of America's leading non-profits specializing in economic and housing development in low-income communities (See www.nationaldevelopmentcouncil.org), approved the NDC Long-Term Endowment Fund. NDC will set aside $300,000 per year for the next ten years (2005 through 2014), and an additional $150,000 per year 2015 through 2024.
In 2025, one third of the accumulated principal will be transferred to NDC's regular endowment. The remaining principal will be invested untouched for 50 years (2025 to 2075.) The remainder will be invested for 50 more years (2075 to 2125.)

Set Aside $4.5 million After 20 Years After 50 Years After 100 Years
2005 - 2025 2025 2075 2125
At 8% Compound $11,555,605 $361,317,670 $8,473,190,665
Transfer $3,851,868 (1/3) $180,658,834 (1/2) $8,473,190,665
To Regular Endowment      

The William T. and Mary McLaughlin Education Fund
In 2006 ten leading citizens and corporations in Wilmington, Delaware established a long-term endowment fund to offer disadvantaged inner city residents scholarships for higher education. Ten individuals and corporations each committed $10,000 - $2,000 per year for each of five years – a total of $100,000 - to endow The McLaughlin Education Fund. The Delaware Community Foundation will manage the money. Over the past 15 years, they have averaged a 9% rate of return. The money will be invested untouched for 25 years. Then one third of the principal will be transferred to begin offering scholarships. The remaining capital will be invested untouched for an additional 25 years. Then half the principal will begin offering scholarships. The final one third of the principal will be invested for the full 100 years.

Assume After 25 Years After 50 Years After 100 Years
$100,000 by 2007 2032 2057 2107
At 9% Compound $862,308 $4,957,167 $184,301,285
Transfer $287,436 (1/3) $2,478,583 (1/2) $184,301,285
To Regular Endowment