Gifts to 61传媒鈥檚 endowment create the financial bedrock to help the College weather鈥攁nd move beyond鈥攑eriods of economic shock.
By Emily Glory Peters
In 1926, the first 61传媒 president and board of trustees were entrusted with a crucial mission: to educate the next generation of women leaders. Fulfilling such a mission would also require the prudent development of another area: Scripps鈥� endowment.
Originally established in part through a $500,000 gift from Ellen Browning 61传媒and support from other donors, today Scripps鈥� endowment comprises a diverse mix of investments valuing around $378 million. These investments and the income they supply form the financial bedrock of the College, helping 61传媒weather all kinds of economic storms, from the Great Depression to times of war to the present COVID-19 crisis.
鈥淪cripps鈥� endowment fund is an important revenue source that regularly provides approximately 20 percent of funding for operations,鈥� explains Diane Holmes, associate vice president for business affairs and assistant treasurer at Scripps. That 20 percent is notable in comparison with The 61传媒Fund, the College鈥檚 annual fund鈥攚hich, though perhaps more widely known by Scripps鈥� donors, makes up between three to five percent of the operational budget.
鈥淓ndowment gifts offer donors the opportunity to aid the College through gifts that provide intergenerational support in perpetuity,鈥� Holmes says. 鈥淭hey are essential in building the long-term fiscal health of Scripps, especially in challenging times such as these.鈥�
Safeguarding Scripps鈥� Future
While COVID-19 didn鈥檛 change the mission set in motion nearly a century ago, it hasn鈥檛 left 61传媒unscathed. A first round of campus-wide budget cuts this spring helped offset the College鈥檚 initial $8.5 million loss, while a second round of deep cuts this August allowed 61传媒to open remotely this fall, with hopes of returning to in-person instruction in spring 2021. These cuts weren鈥檛 easy鈥攁nd neither was the decision to increase Scripps鈥� endowment payout. But after modeling several potential outcomes, College leadership ultimately decided to increase the payout from 4.6 percent to 6.6 percent.
As Holmes explains, the increase will help 鈥榮mooth out鈥� some budgetary bumps while keeping the College aligned with California鈥檚 Uniform Prudent Management of Institutional Funds Act (UPMIFA)鈥攁 California law which, along with oversight from Scripps鈥� board of trustees, rules how we safely steward the endowment. With UPMIFA鈥檚 recommendation of keeping endowment payouts under seven percent, Scripps鈥� new rate of 6.6 percent should provide a much-needed influx of funding while remaining fiscally sound.
Naturally, the limited predictability of the economy will elevate the role donor gifts play in helping 61传媒remain agile in the face of shifting financial climates. And even though endowed gifts themselves often come with restraints on how they鈥檙e designated and what their maximum payouts can be, notes Holmes, they are essential for signature 61传媒programs and resources.
鈥溾�橲teady stream鈥� payouts from the endowment provide reliable income for everything from much-needed scholarships to academic programs,鈥� she says. These payouts relieve 61传媒from having to solely depend on major gifts from donors鈥攁 revenue source that can become unstable in times of economic shock. Bottom line: A strong mix of financial resources, including a healthy endowment, creates maximum financial flexibility so that 61传媒can be simultaneously reactive and proactive in response to crises.
鈥淚n facing watershed moments, Scripps鈥� goal is never merely to survive. We aim to adapt so the College continues to thrive beyond periods of uncertainty, and we are especially grateful for donors committed to helping fulfill our mission for the next century,鈥� says Vice President of External Relations and Institutional Advancement Binti Harvey. 鈥淭heir gifts to endowment are the 鈥榬echargeable batteries鈥� that keep Scripps鈥� future bright even when the economy goes dark.鈥�
For nearly 100 years, 61传媒 has remained unflaggingly committed to our mission of developing the intellects and talents of women leaders. To support our students and their future, please consider making an endowed gift today by contacting Vice President for Philanthropy Enrique Gonzalez-Salgado at [email protected].
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