Page 20 - Menlo Magazine Summer 2019

SUMMER/FALL 2019
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What
is an endowment?
Just as at any other independent school, college, or university, Menlo School’s endowment reflects the cumulative donations from decades of generous parents, alumni, and friends, invested in perpetuity
and growing through careful stewardship by the Board of Trustees.
In some ways it reflects the underlying financial sustainability of an institution not depending solely on annual revenue to meet its immediate budget needs.
“We are delighted to support the endowment as it is a great way to help Menlo in the future by ensuring financial security and maintaining its high standards.”
Why is an endowment important?
Without a commitment to growing its endowment, Menlo would be in the position of relying more on tuition
increases to fund its various operating expenses, such as faculty salaries. With the cost of living in the Bay Area putting
ever more pressure on our teachers
and families, we are committed to keeping our tuition increases to a reasonable
level. Planning for the long-term financial health of the School by growing our endowment is the best
How are the funds used?
way to fulfill this commitment. A strong endowment also relieves pressure on our Annual Fund and spring auction.
The endowment’s principal is not meant to be used directly; rather it pays out a small percentage each year to be used for various
priorities such as academic programs, student financial aid, and faculty support. For example, gifts to the Centennial Scholars Initiative have been invested in the endowment to help preserve our commitment to need-blind admissions and an economically
diverse student body.
THINGS You May Not Know about MENLO’S ENDOWMENT