winter 2007 - Concord Academy

Unendowed:CA’s Early DecadesWhen the formidable Elsie GarlandHobson, Concord Academy’s firstheadmistress, gave her annualreport to the trustees in 1933, she told themin stalwart terms what made the elevenyear-oldschool special: “There is a combinationof intellectual vigor, industry, andsimpli city . . . which stands as a rock,unchang ing in a changing world.”It was an important testament duringa time when the country had sunk into economicdepression, and Concord Academywas experiencing a steep decline in enrollment.In the face of these difficulties, theboard showed great vision by voting to institutea retirement plan for faculty. Teacherswould set aside part of their salary, and theschool would match a portion of it to funda cushion for later years.CA’s trustees recognized that ConcordAcademy’s people formed the rock on whichthe young school stood, and a first steptoward keeping the special character of thisschool “unchanged in a changing world”was to offer the faculty a measure of financialsecurity.But the institution itself had no suchcushion. For more than three decades afterits incorporation in 1922, the school livedyear to year. Each scholarship, each salarywas paid almost entirely with tuitionrevenue, supplemented by annual gifts fromfriends of the school.Finally, in 1954, a jubilant letter fromHeadmistress Elizabeth B. Hall announcedthe first gift intended as a permanent“Our goals for increasing financial aid are centeredon the importance of bringing together talented,curious, compassionate, and creative students whoalso reflect difference. We have to do everythingwe can for students who are great matches butsimply can’t afford CA.”Pam SaffordAssociate Head for Enrollment and Planningendowment is a permanent resource, “as income from endow -ment increases, the school is more able to act and commit,innovate and sustain.”Shortly after he arrived at CA in 2000, Dresden set in motion astrategic planning process that identified advancements necessaryto take CA into the next decade. Knowing that such advance -ments would require increased endowment income, Dresden iscommitted to raising awareness of what endowment can—andmust—do. “If we care about CA, we have to care about endow -ment, because down the road there will be no CA as we knowit without more endowment,” said Dresden. “Essentially,endow ment is about generational equity. We who benefit froma strong CA today want to ensure a strong CA for those whocome after us.”What Is Endowment?CONCORD ACADEMY MAGAZINE WINTER 2007millions38$45$40$35$30$25$20$15$10$5$0Total Endowment Growth1997 1998 1999 2000 2001 2002 2003 2004 2005 2006An endowment is a permanent fund invested for both long-termgrowth and annual income. Concord Academy’s endowmentcomprises both restricted and unrestricted funds. A gift to theendowment is considered restricted, sometimes in the form ofa named endowed fund, if a donor asks that it be used for aspecific purpose. Most of the school’s restricted endowmentfunds have been designated for the benefit of faculty or financialaid. Unrestricted gifts to the endowment, of greatest benefit tothe school, allow trustees and administrators to manage fundsstrategically, as needs and opportunities arise.How Does CA Manage and Use Its Endowment?Concord Academy’s endowment dates back only to 1954 and didnot exceed $1 million until the early 1980s. Yet the endowmenthas seen strong growth over the past twenty-five years, thanksto many new gifts combined with smart management. Currentlythe endowment is valued at more than $44 million. The Boardof Trustees’ Investment Subcommittee, which meets quarterly,