FAQ

What is an endowment fund?

An endowment fund is an investment fund created from philanthropic contributions. While the principal remains untouched, allowing it to grow and have a greater impact over time, the dividends and gains are granted annually to support our school. 

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Why is an endowment fund important?

All schools, but especially small rural schools, need long-term, sustained, dependable funding sources. An endowment fund provides a permanent source of revenue for the school, thus improving the ability of the Board of Trustees to plan for the long-term financial health of the district. 

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What will Loma Prieta's endowment be used for?

The endowment’s purpose is to enable rich learning experiences and academic excellence at the Loma Prieta District. By investing in the long-term health of our schools, we invest in the long-term health of the entire Loma Prieta community.

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When will we see the Loma Prieta Future Fund start to pay out to the schools?

Established in 2019 it will likely take a few years before the fund is large enough to be able to make an impactful contribution to the school. Our goal is to reach $1M in contributions before we plan to pay out the 4% annual growth.

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How is the Loma Prieta Future Fund managed?

Management of the endowment fund follows best practices of accounting and reporting under the umbrella of the Santa Cruz Community Foundation. A committee of school administrators and local community members also provide oversight, working with the school board of trustees to ensure the annual funds are managed and spent appropriately.

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How does an endowment fund grow?

Endowment funds grow through philanthropic contributions and also by reinvesting interest and dividends earned. Once we reach $1M the Future Fund will begin to allocate funds annually to the school based on 4% of the principal. 

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How is this different from the Loma Prieta Public Foundation?

The Loma Prieta Future Fund is an investment in the future. Your donation will help the community 5, 50, and 150 years out. You invest in the principal and the fund grows and allocates earnings to the school every year.
LPEF, on the other hand, raises money and directly grants that money each year for current critical programs. 

If you are a family with children currently attending Loma Prieta schools, please donate to the Future Fund in addition to - and not in place of - your annual giving to LPEF. LPEF will directly serve your children.

 

How can I contribute to the Loma Prieta Future Fund?

Write a check to the Community Foundation Santa Cruz County (CFSCC). It is very important to note the name of the endowment on the check as well – Loma Donor Gift – as the CFSCC manages multiple endowment funds. Mail your check to the Donor Services Officer at Community Foundation Santa Cruz County, 7807 Soquel Drive, Aptos, CA 95003

If you are interested in making a stock transfer, please contact the school at 408-353-1101.