Join the Holland Hall Giving Legacy

Establishment of and contributions to endowed funds are fully tax-deductible to the extent provided by law.

Holland Hall's Investment Committee—a committee of the Board of Trustees—is responsible for overseeing the management of all internally held endowments. Currently, the funds are invested with Mercer.

Set by the Investment Committee and approved by the Board of Trustees, the spending policy ensures endowed funds are distributed in a sustainable manner. As of 2024, distribution averages roughly 4%. The school utilizes a weighted average spending calculation to determine the annual draw from an endowment fund. The weighted average method uses a base year of spending (fiscal year 2011) multiplied by the prior year-end consumer price index and weights this by 70%. This method then uses the 3-year average of the year-end market values of the fund, multiplied by 4%, and then weights the result by 30%. The cap, or maximum spending, is 6% of the most recent calendar year-end market value.

At times, due to market fluctuations, funds fall below their beginning value. In this case, distributions are not taken until the fund recovers to its level at the time of establishment.

A commitment of $100,000 is required to establish a new fund; donors can determine the name of this new fund. The fund will be invested by the school in a pool with its other endowment funds in accordance with the school’s Endowment Investment Policy but will be separately accounted for in the school’s records for reporting and record-keeping purposes. While the donor must commit $100,000 to establish a new endowment, they can add to the fund on their own timeline agreed upon with the school, e.g., $20,000 per year for five years. Distributions from the fund can begin once the endowment is fully funded and has appreciated for one year.

There are two types of endowments: restricted and unrestricted. Most endowments are restricted, which means the donor designates how the income will be spent. Examples include supporting financial aid for students, compensation for faculty, etc. 

Donors can also establish unrestricted endowed funds, whose income may be spent at the discretion of the school’s leadership, typically to seize new opportunities that may otherwise be out of reach.

Donors who establish a new endowed fund or make significant contributions ($25,000+ in 2024) to an existing endowment receive annual reports regarding the financial status of the fund and the impact the fund makes on the school community. Donors determine who should receive the annual reports when they are no longer living.

Most Holland Hall endowments are structured so that anyone can contribute any amount to augment the fund.