Endowments at Bethany
In recent years, endowments have become increasingly important in sustaining the long term financial stability of Bethany, and particularly in supporting our very generous and aggressive financial aid program for students in theological and ministry study.
Establishing an Endowment
Bethany’s donors have chosen a wide variety of ways to express their support through endowments. Endowment contributions may be made in any amount. Smaller contributions are added to general endowment or to a named endowment of the donor’s choice.
To establish named endowment, we ask a minimum of $20,000. Our current list of named endowments for all purposes range from that size up to $1,500,000. With as much reliance as Bethany must have on scholarship support, family scholarship endowments are a popular way to give endowment support. However there are many other options as well.
To begin the process, donor(s) and Bethany staff meet and clarify the purposes and general size of the initial intended gift. If the initial gift is of at least the $20,000 minimum size, we establish the endowment on our books immediately. If the donor(s) need time to build up to that level and can do so within three years, we hold the gifts in reserve until the endowment level is reached through a series of gifts. Funding may also be from a future gift.
What kinds of purposes might an endowment support?
Purposes are quite varied:
- Named scholarship endowments are probably most popular
- General endowment
- Endowed faculty chairs
- Endowments to support specific courses like leadership or stewardship or Brethren history
- Endowments to support program initiatives such as peace institute, youth institute, Brethren Academy, bi-vocational ministry education, urban ministry, or global education
Now, tell me again exactly how your endowments are used --
Legally, an endowment is required to retain the principal of the gift and expend only from income or gain on the fund. Bethany's policy is generally to expend 4.5% per year of the three year rolling average balance of the fund. Hoping the endowment will average higher returns than that, the "overage" in income helps sustain the buying power of the endowment as inflation reduces the value of a dollar.
How does the donor stay informed after the endowment is established?
Each year we send a complete report to donors or to other family members. That report includes current fund balances and how much of the fund was applied to designated purposes of the fund over the past 12 months. We welcome questions or commentaries from interested parties at any time.
If you would like for us to send a more detailed brochure on endowments at Bethany, please contact Lowell Flory at 
bethanyseminary.edu
