As we all carefully watch news of the economy and consider the impact it may have on our college and personal budgets, there is another financial implication I want to bring to your attention. This volatile market has negatively impacted the value of endowed accounts held at the MCC Foundation for the benefit of MCC students and programs.
Over the years, our Foundation has been extraordinarily successful in securing private support for endowed scholarships and chairs. Generous donors working with the Foundation have created an endowment in excess of $6 million and it has annually generated $275,000 in spendable income to support student success.
The endowment relies on investment performance to generate spendable income. Under normal circumstances, a slight decrease in the value of our endowment from one year to the next has no impact on our ability to make the annual distributions expected by our donors. But I don’t need to tell you this has not been a normal year. In spite of reasonable and prudent investment policies, it is likely that scholarships and chairs funded by endowments will be negatively impacted for the 2009-2010 academic year.
(Spendable income for the remainder of the 2008-2009 academic year has not been affected.)
The Foundation is working closely with endowment donors and is also seeking other resources that may be available. The Foundation staff has briefed me and the vice presidents and is also in touch with department chairs and scholarship coordinators to discuss possible implications.
Members of the college community who are actively involved in selecting and awarding scholarships may want additional information. If so, you should:
-- Contact the Foundation with questions on endowment accounts and balances.
-- Contact the Financial Aid Office to inquire about available funds held at the College.
I am sharing this news with you now, even before we know the final implications, so that you are aware of the potential implications on your students and your program. By April 15, the Foundation will provide a detailed, final report to the college community on the status of endowment spending for the 2009-2010 academic year. I will keep you informed.
Larry W. Tyree