Understanding Fundraising At Riverdale

Understanding Fundraising at Riverdale

WHO GIVES TO RIVERDALE?

895 623 ALUMNI

PARENTS

When we talk about participation, we focus on the number of people who give in a year. W ​ e receive around 2,000 Annual Fund donations every year from people who support Riverdale, and the students and faculty who make up our school community.

It’s especially important to us that people with so many different relationships to the school make a gift—each with a unique perspective about why they already love Riverdale and their hopes for our future.

116 103 PARENTS OF ALUMNI

GRANDPARENTS

69

FACULTY & STAFF

102

GRADUATING SENIORS

2020-21 ANNUAL FUND DONORS

42

CURRENT & EMERITI TRUSTEES

5

FRIENDS

Cover Image Lower School students play on the field at the River Campus.

Riverdale is a school and a nonprofit.

As a nonprofit organization that is dedicated to the education of our students, Riverdale’s financial model is based on fulfilling the year-to-year needs of the school and not on generating revenue. All donations are invested in directly supporting student needs (from the care of our people to the care of our physical campus). These gifts are tax deductible for the donor and not taxed as income for Riverdale, due to Riverdale’s nonprofit status.

Fundraising at Riverdale is made up of two types of funds:

1

ANNUAL FUND

The Annual Fund, which runs every year from July 1 to June 30, provides the foundation for all other fundraising at Riverdale. Annual Fund gifts cover all aspects of education at Riverdale. The Annual Fund is primarily unrestricted support, to be used where it is needed most. This reliable base helps cover yearly expenses with flexibility, without which bigger projects are not feasible or wise.

Institutions without a strong Annual Fund may find themselves in a cycle of crisis fundraising, asking for money because the organization is at immediate risk.

2

RESTRICTED FUNDS

Non-Annual Fund gifts are referred to as restricted donations: this means that a gift has a specific purpose stated at the time it is given. Restricted Funds provide capital or endowment support.

ANNUAL FUND UNRESTRICTED SUPPORT

OPERATIONAL EXPENSES

Because an Annual Fund gift does not have a specific purpose when it is given, the school is able to utilize this money to fill any gaps that may arise. Annual Fund donors trust the school to spend money thoughtfully and strategically, so it can be flexible when faced with unexpected situations.

Operational Expenses is a broad term we use to describe specific and recurring items. These are the costs to run the school each year, from faculty salaries and benefits to chairs in the classroom.

The Annual Fund provides for approximately 7% of Riverdale’s operating budget each year.​

IMMEDIATE NEEDS

We believe it is important to make sure everyone, at every dollar amount, can use their voice while supporting the school.

This year Annual Fund donors can express a preference when supporting Riverdale: 1. UNRESTRICTED SUPPORT 2. F INANCIAL AID 3. D IVERSITY, EQUITY, INCLUSION, AND BELONGING (Professional Development and Programming) 4. A CADEMIC ENRICHMENT (Athletics, the Arts, Outdoor Education, and Experiential Trips)

Riverdale’s Annual Expenses Broad expense categories, along with examples for each area, are provided to the right.

RESTRICTED FUNDS CAPITAL

Capital gifts are given to a specific purpose or project, often a long-term initiative at the school. For example, classroom renovations, new technology devices, curricular programs.

ENDOWMENT

The school’s endowment is a collection of investment funds that are intended to grow in value each year. Donations to Riverdale’s

endowment can be for specific purposes (such as financial aid for a Lower School student or funding for the language department) or for general expenses.

Endowment funds are not spent in full each year: instead, the interest of the invested fund is partially spent and partially reinvested. This means we continue to use endowment funds each year, regardless of whether or not that fund receives new contributions.

OPE EX

61.7%

9.2%

Salary, Benefits, Retirement Contributions

Classroom Technology & Books, Visual & Performing Arts, Athletics Equipment

13.3%

3.4%

Tuition, Trips & Transportation, College Prep Classes & Application Fees

Partnerships with Local Organizations, Additional or Unanticipated Needs

8.6%

3.8%

Classroom & Campus Maintenance, Utilities

Fulfillment of Loan Commitments

FACULTY & STAFF

FINANCIAL AID

ERATIONAL XPENSES

PLANT

Sample Endowment Fund The chart to the right shows how the interest earned on an endowment fund of $100,000 would be split into: 1) spending during the school year 2) reinvesting into the fund

TOTAL ENDOWMENT FUND

INSTRUCTIONAL

OTHER

DEBT REPAYMENT

100,000

$

6,000

INTEREST EARNED THIS YEAR

$

*market-dependent

4,500

AMOUNT FROM INTEREST REINVESTED

$

AMOUNT FROM INTEREST SPENT IN SCHOOL YEAR

$

TOTAL FUND FOR UPCOMING YEAR

1,500

104,500

$

Donations of all sizes and from all community members matter.

One of the ways to belong to a community is to financially invest in it and your gift to Riverdale shows that you support the school and its mission.

Additionally, outside organizations use participation numbers when evaluating engagement with the school, such as when applying for a grant, qualifying for a loan, or during the accreditation process. Even though the collective dollars make a difference, each person’s individual gift—at any level—matters, too.