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Endowments are held by The Children’s Hospital Foundation. When a gift to an endowment is received, it is invested for growth and income in a diversified portfolio and strategically managed by our Joint Investment Committee. Every year, the Foundation makes distributions to the hospital from endowments. Each distribution is used according to the donor's intent as outlined in a formal agreement between the donor and the Foundation.
Funds earned from an endowment may support a program or salary and are distributed to the hospital annually in accordance with the policies established by The Children’s Hospital Foundation. Currently, the distribution amount is 5 percent of the average fair market value (using a trailing 12 month average) of the endowment. Additional earnings of the endowment are returned to principal, ensuring growth and protection against inflation.
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Where Does My Investment Go?
Example of Chair Funding Return
The graph below depicts the returns, as an example, if a donor invested $2 million in the year 2000. The cummulative distributions to the hospital would have totaled close to $900,000 while the value of the endowment would have been $2.3 million as of September 30, 2009. The value would have been $1.6 million if invested using average S&P 500 returns.
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