Donations

[Dulax31]

I am curious of what people think out there about donations to their favorite program. What is better, setting up an endowment like SFU has done, or just donate the money directly to the club's annual budget. I know in the long term the endowment is the better way, but is it worth the wait? Or is it better to do a mix, some is endowment money, some is for the annual budget?

Link to SFU's endowment information:
http://www.sfulacrosse.ca/donate.php

[COlaxer]

I know a lot of programs do not have the time to wait, so I would say that the annual budget is the best way.

[John Paul]

It completely depends on the size of the gift, your current and long term needs, and how the gift money is handled by your university.

Remember that endowments typically pay out at 5% per year, so even a very big $100,000 gift only provides $5,000 a year. The benefit is that the $5000 is there every year, forever...and it will probably grow slightly as the principle grows if your university is doing a good job with its investments. If your team is completely comfortable with its budget right now, adding an endowment is a good way to add to it a little bit every year.

The problem with large gifts that you spend right away is that they may not be there again in the future. You can't budget every year expecting the same large gift. So if you have someone who is considering a major donation, and you don't want to or can't start an endowment, spend the money on something special that you know is only a one-time deal. For example: new video equipment, new uniforms, a mid-season trip the team usually can't afford, etc. Don't add to the team's general budget for one year as it probably won't be there the next, and you don't want to have to cut back once you've had something added.