Page 3 - 2024 June report

A GIFT THAT KEEPS GIVING
Robert A. Krause
Endowments play an important role in JSF strategy and funding. The Entrepreneurship Scholarship Program at JSF effectively uses endowments as an exit strategy for Tribal colleges and schools that serve Nativestudents.What’smore,itenablesustohelpfill crucial financial gaps for the schools involved. Today, there are 12 of these tribal college entrepreneurship scholarship endowments. The optional site visit in September is to one of those endowment schools — Heritage University. We are currently considering three Tribal colleges whose endowment funding fell short years ago.
JSF’s commitment to endowment funding is evident in our establishment of 29 endowments across the United States and Canada. As of June 2024, JSF has contributed to 29 endowments. One of this year’s projects is to complete a comprehensive report on all JSF endowments. Our consultants, Rick Williams and Ida Nelson, are building out the program. The figures are still being accumulated, but Rick estimates that the current balances in these JSF assisted endowments exceed $25 million.
Endowment funding provides a measure of financial stability and sustainability. It sets up institutions for the long haul. The JSF strategy of building an endowment to provide current scholarship funding for an institution also has shorter-term benefits. We can replace our annual funding with endowment proceeds and transition to fund another institution. Thus, endowments represent a transfer of power, wealth, and — most importantly — steps toward sustainability and equity.
Endowment funding does come with risks. Will the funds be managed appropriately? The management concern encompasses the stewardship of the investment portfolio and the distribution of the revenue stream. Over-distribution threatens the sustainability of the endowment. Under-distribution underserves its purpose. Endowments must also be built in collaboration with effective institutional leadership. Will the next generation of leaders be as effective? Will the defined purpose of the endowment be obsolete in the future? If so, will this lock up capital that can no longer be used to serve the population intended? Are the known immediate needs less important than future unknown needs?
A recent Center for Effective Philanthropy study cites that out of 283 foundations surveyed, less than one- third provide endowment grants. When it comes to grant-making, JSF is part of this minority.
We see the value of endowment funding. While the risks are real, the outcomes are worth it — bringing reverberating impact for years to come. As Rick likes to say, “Endowments are gifts that can give forever.”
Education / A Powerful force for change
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