Endowment Fund
The Moraga Education Foundation established the MEF Endowment Fund in 1991 with the intention of growing a long-term, stable source of funds that will help protect public schools in Moraga from volatility in state funding.
The MEF Endowment Fund Value as of July 1, 2023, is over $3,000,000. The goal is for the endowment to reach a sufficiently large size such that the cash distributions to the Moraga schools can represent a meaningful portion of the total funds MEF provides to the schools. To contribute to the MEF Endowment Fund, make a donation below and be sure to designate your donation to the Endowment
What is the MEF Endowment Fund?
Imagine a day, in the not too distant future, when it would be possible to pay for a significant portion of non-state-funded essential and enrichment programs for students (TK-12) from a self-perpetuating source of income - forever. This is the purpose of the MEF Endowment Fund.
How does the endowment fund work?
All endowed funds are invested and after the fund reaches $5,000,000, the interest, dividends, and capital gains earned on principal could be distributed, up to 4% of the Endowment Value. This means that a $5,000,000 endowment could pay out as much as $200,000 per year. Earnings that exceed the payout amount are retained in the Endowment Fund to safeguard its purchasing power against inflation and to act as a cushion for periods of poor market performance, allowing for modest growth over time.
How is a gift to the endowment fund different from an annual gift?
All donations help MEF and the Moraga schools in different ways. Annual gifts are important because they meet present-day needs, funding staff and programs in our schools now. By comparison, endowment gifts grow over time, providing a stable source of perpetual income for MEF to support our schools for years to come. When you make a donation to MEF, you can choose to designate all or a part of it to the endowment.
How are the funds in the endowment fund invested?
Funds are professionally managed by an outside firm and are invested in a diversified portfolio of asset categories, including U.S. equities, non-U.S. equities, fixed income, and cash. The funds are invested in accordance with an asset allocation policy approved by the MEF Board of Directors and managed by the Investment Committee.