TOC Posted February 8, 2023 Share Posted February 8, 2023 14 minutes ago, CadetDood said: I believe the plan is to have an alumni corps in 2034, probably similar to the Bluecoats alumni corps from last year. My guess is this money would go towards funding the alumni corps. The opening sentence of their announcement tells us these funds are going to be used now and help get the corps to 2034 and beyond. 1 Quote Link to comment Share on other sites More sharing options...
ironlips Posted February 8, 2023 Share Posted February 8, 2023 3 hours ago, rpbobcat said: This approach may be "a good deal safer and less fraught with intrigue . . " for the corps. But what about the investors As they "the devil is in the details". The ads for investment products always say "read our prospectus carefully, before you invest ". Seems like a really good idea here. This is always good advice, but this constitutes more of a donation than an investment opportunity does it not? Quote Link to comment Share on other sites More sharing options...
rpbobcat Posted February 8, 2023 Share Posted February 8, 2023 (edited) 36 minutes ago, ironlips said: This is always good advice, but this constitutes more of a donation than an investment opportunity does it not? From reading the information on The Cadets web site, I'm not sure exactly what it is. Personally ,I would want more specific information about exactly how the endowment works, before I would commit giving any money. I'd also go over it my financial advisor and accountant to see what they think. Edited February 8, 2023 by rpbobcat Quote Link to comment Share on other sites More sharing options...
ironlips Posted February 8, 2023 Share Posted February 8, 2023 Endowments generally work this way: An institution (a college, for example) collects donations from alumni, friends and other benefactors and places this money in a special account. The principal is not drawn upon and continues to grow but the interest is used to invest in stocks, bonds or other securities. Any profits are then utilized as needed. One's participation in an endowment is a gift to the institution which then uses the principal to generate more funds. There is no "return" to the investor. Incidentally, I know of at least one prominent drum corps that established an endowment decades ago: https://www.bluedevils.org/support/endowment/ 1 1 Quote Link to comment Share on other sites More sharing options...
JimF-LowBari Posted February 8, 2023 Share Posted February 8, 2023 35 minutes ago, ironlips said: Endowments generally work this way: An institution (a college, for example) collects donations from alumni, friends and other benefactors and places this money in a special account. The principal is not drawn upon and continues to grow but the interest is used to invest in stocks, bonds or other securities. Any profits are then utilized as needed. One's participation in an endowment is a gift to the institution which then uses the principal to generate more funds. There is no "return" to the investor. Incidentally, I know of at least one prominent drum corps that established an endowment decades ago: https://www.bluedevils.org/support/endowment/ My Division II college (PA state school) has bunch of endowments they talk about in the alumni magazine. This fills in some of the blanks of my knowledge. 👍 Quote Link to comment Share on other sites More sharing options...
2000Cadet Posted February 8, 2023 Share Posted February 8, 2023 7 hours ago, CadetDood said: I believe the plan is to have an alumni corps in 2034, probably similar to the Bluecoats alumni corps from last year. My guess is this money would go towards funding the alumni corps. Definitely NOT the case based on what they said in their statement. Quote Link to comment Share on other sites More sharing options...
KVG_DC Posted February 8, 2023 Share Posted February 8, 2023 5 hours ago, ironlips said: Endowments generally work this way: An institution (a college, for example) collects donations from alumni, friends and other benefactors and places this money in a special account. The principal is not drawn upon and continues to grow but the interest is used to invest in stocks, bonds or other securities. Any profits are then utilized as needed. One's participation in an endowment is a gift to the institution which then uses the principal to generate more funds. There is no "return" to the investor. Incidentally, I know of at least one prominent drum corps that established an endowment decades ago: https://www.bluedevils.org/support/endowment/ This. Giving to the endowment is not an investment you see on returns. It may be a tax deductible contribution. Investment would only be if you ALSO followed where the interest was invested and invested in those stocks in a way to bolster their value I guess. But that’s no different than regular investing choices 2 Quote Link to comment Share on other sites More sharing options...
KVG_DC Posted February 8, 2023 Share Posted February 8, 2023 Also. Endowments are usually drawn up with some specific guides for the purpose. Ie scholarships, certain operations, etc. They may also have a separate board for the oversight of funds released than the org receiving funds. 1 Quote Link to comment Share on other sites More sharing options...
JimF-LowBari Posted February 8, 2023 Share Posted February 8, 2023 (edited) 9 minutes ago, KVG_DC said: This. Giving to the endowment is not an investment you see on returns. It may be a tax deductible contribution. My understanding also: Any requests for $$$ for endowments I get make it clear you are donating. Nothing said about getting anything in return. (Except ye olde “attaboy” for giving. 🙄) Edited February 8, 2023 by JimF-LowBari Quote Link to comment Share on other sites More sharing options...
Sutasaurus Posted February 8, 2023 Share Posted February 8, 2023 If you are going to participate, make sure you direct your funds to specific categories. If you mark your contribution for “General Operating Expenses” then kiss that money goodbye. As other posters have said, it’s basically a tax write off but if you want those dollars to “work” for the corps, be specific to what you’re donating to. Quote Link to comment Share on other sites More sharing options...
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