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Endowment

The Endowment At University School

The programs, facilities and financial aid of the University School can be expanded and enhanced for future generations by giving to the Endowment Fund.

By providing financial stability for particular programs, facilities, and other educational needs, USM's endowment will ensure the future excellence of the school for generations to come.

Contributions to USM's endowment are given in perpetuity and only a portion of the income earned annually is used in support of USM priorities. The rest of the earnings are channeled back into the fund, so that the endowment grows over time.

An endowed fund generates income for its designated purpose according to the distribution policies established by the Endowment Board of Trustees. Donors who establish endowed funds receive regular updates on how USM uses the income from their funds to support the designated purposes.

An endowment fund can be a one-time, one-person arrangement or it can be an ongoing arrangement to which many people contribute.

Named Endowed Funds

A Named Endowed Fund that supports the priorities of University School may be funded with

a minimum gift of $50,000. Additionally, the Board of Trustees may elect to name an endowed fund after a particular individual as a means of recognizing outstanding service to the school,

if those funds are already in place.

If you would like more information regarding endowed funds, please contact Jodie Tonner,

Director of Major and Planned Gifts at (414) 540-3333 or jtonner@usmk12.org.

2006-2007 Endowment Report

A carefully managed endowment is an integral part of a well-established and successful school.

We are pleased to report that at as of June 30, 2006, the value of the USM Endowment Fund (including pledges) exceeded $54 million.

Oversight

An independent volunteer Board of Trustees provides oversight for the Fund's management.

The primary objective of the Board is to preserve and grow the real principal value of the

endowment over the longer term, while maintaining the annual level of spending in real dollar

terms. USM's endowment is invested with Commonfund, a nonprofit investment management

firm that serves over 1500 leading independent schools, universities, and non-profit

organizations, managing assets in excess of $34 billion. The Endowment Board tracks the performance of the fund carefully, and is pleased to report that our fund has consistently

out-performed the national benchmarks chosen by the board.

Distribution

The endowment is managed for total return, with an annually agreed-upon distribution to USM

set at approximately 5% of the value of the fund averaged over the last eight quarters. This

policy allows for the greatest investment flexibility and for growth over the long term of the endowment's contribution to the School. During the 2006-2007 school year the endowment

fund distributed $2.34 million to University School, comprising approximately 10 percent of the school's annual budget.

Funding Priorities

Specifically, endowed funds address two ongoing funding priorities for USM: to provide

competitive salaries, benefits, and professional development opportunities vital to attracting and retaining the best faculty; and to provide financial aid and general tuition support to a talented

and diverse student body. Additionally, the unrestricted endowment fund remains vital for

long-term maintenance of our expanded facilities, dynamic academic programs, and diverse

non-academic offerings.

Thank You to Our Donors

Prudent investment management coupled with sustained fund development efforts will enhance the endowment's growth and build an even stronger future for University School. We are grateful to our most generous donors who over the years have nurtured this critical fund for the next generation of USM students, and look forward to even greater success for an endowment that will give back to our school for years to come.