Planned Giving

The Transformative

Power of Giving By Kate Muttick ’97

Morristown Beard recently received a transformative bequest of $2.5 million from a dedicated alumnus, directed to endowment, that will both assure our future and better our present. A graduate of The Morristown School, this alumnus’s enduring support of the institution is remarkable in that even after The Morristown School and The Beard School merged—and evolved beyond his memories and experience—he remained loyal to the new vision.

One of the timeless features of Morristown Beard, which is echoed by both prospective students and alumni, is the sense of belonging that so many feel when they step onto this campus. There’s a sense that this is the place they’re supposed to be. And while the School’s effects are difficult to predict, it’s clear it will leave an indelible imprint on the individual’s path.

This was certainly true for this alumnus. In addition to the relationships forged with faculty mentors in the classroom, he found camaraderie on the field. Representing Morristown School both on the football field and track, many of his lessons were learned beyond the confines of the classroom walls. A sense of school pride, of teamwork, and of belonging stayed with him long after graduation.

His long-term relationship with the School, sending a child here, serving as a trustee and on many trustee committees, reminds all of us of the transformative impact that an institution can have on an individual’s life. Clearly the School meant a lot to him; but in turn, his legacy of generosity means a lot to the School. As Head of School Liz Morrison recently reflected, “what’s so transformational about endowing a program or place is that this person’s gift means we will always have support.”

Some parts of school life are less glamorous than others. For example, improving and maintaining campus facilities can be costly or disruptive. And yet, the alumnus who recently included Morristown Beard in his bequest knew it would never be an option to let the campus fall into disrepair. His transformative planned gift, directed to endowment and invested wisely, will ensure a steady stream of earned income to support the costly maintenance of our campus facilities for years to come. As a lifelong giver, his donation ties the School’s rich history to its endless future potential. That’s the type of gift that is powerful; it makes room for innovation and ingenuity, for generations to come. And that’s exactly what ensures the future of this institution. “This alumnus, a true philanthropist and friend of the School, understood the transformative power of giving especially to endowment. We are deeply grateful for his most kind and generous gift. It was an honor to know him,” said Betsy Patterson, Director of Advancement.

What is Planned Giving?

While a one-time gift to the annual fund has an immediate impact, a gift to the endowment is a gift that keeps on growing, and making a bequest or a planned gift is one way to contribute to the longterm success of the School. A planned gift is a contribution that is arranged in the present and allocated at a future date, ensuring a legacy that lives on both for the benefactor and for future MBS generations. Commonly donated through a will or trust, planned gifts provide an opportunity for donors to support Morristown Beard School through deferred gifts. Many of these planned gifts offer attractive tax benefits to the donor. Funds provided by these gifts—whether given through gift annuities, trusts, insurance policies, bequests, or other means—help ensure a bright tomorrow for Morristown Beard School.

Planned gifts represent an exceptional pathway through which you can support the students of Morristown Beard School while remaining mindful of additional commitments to family and other charitable priorities. In fact, there is a specific legacy group at Morristown Beard that recognizes the importance of this type of charitable planning. The 1891 Founders Society was established to honor generous alumni, parents, and friends who have created trusts, bequests, or other planned gifts to benefit Morristown Beard School. Every individual who supports MBS with a planned gift is eligible to become a member of the 1891 Founders Society. The Society celebrates members’ support in many ways, including recognition in school publications, campus events, and other special activities.

Please contact Betsy Patterson, Director of Advancement, at bpatterson@mbs.net to learn more about how you can make a planned gift to positively impact generations of students.

Increase the Impact of Your Gift —Endowment Giving

A school’s endowment is critical to its longterm success. Defined as assets donated with the intention of benefitting a non-profit institution, endowments typically stipulate that the principal remain intact, allowing the dividends to provide support in perpetuity. While a donation to a capital project will live on through the brick and mortar structure, a gift to endowment will provide a less tangible, but no less important legacy of support that will keep the brick and mortar functioning for many years to come.

Endowment funds consist of cash, equities, bonds, and other types of securities that generate investment income. Each year, only a portion of the earned income is spent ( the “draw”) while the remainder is added to the principal and reinvested for growth. The principal (the gift(s) made to establish or increase an endowment) is not used for spending purposes - it’s meant to remain intact to stabilize the endowment going forward.

Your gift to the MBS endowment can impact the School for today and in the future. Take an example of a $100,000 unrestricted gift to the School directed to the endowment. After just one year of being invested, that gift, based on the S&P 500 20-year average annual return of 7.5%, could generate a return of $7,500 for the School. After 20 years, that same gift will have generated a 107% increase in the principal balance, while providing a 4% annual draw. That gift will have provided the School a total draw of $113,300 over 20 years, supporting ongoing initiatives without ever touching the original gift of $100,000.

The funds that come from the endowment growth are critical to the security of the School; from keeping tuition increases to a minimum, to providing financial aid and scholarships, to serving as a budget buffer against unforeseen circumstances. Gifts to the endowment help support the School today and ensure its success for tomorrow!

Principal Balance Annual Return* Annual Draw**

Impact of Endowment Giving

$200,000

$100,000 $119,000

$4,700 $8,900 $141,000

$10,600

$5,600 $168,000

$12,600

$6,700 $15,000

$8,000