“With no endowment, without a dollar of invested funds, and with donations and subscriptions coming in so slowly that at no time during the year were there funds in hand sufficient to carry the Club sixty days into the future, it has been impossible for your superintendent to do his best work.”
− 1894 Report of the Superintendent
Bunker Hill Boys’ Club
While much has changed for BGCB in the past 114 years, our financial model has remained as challenging as it was in our founding year. Throughout our history, BGCB had depended heavily on annual fund contributions to sustain operations. As a result, we have been vulnerable to economic shifts every year, placing unwarranted stress on our staff, and ultimately jeopardizing our commitment to the youth whom we serve. Through the Campaign, BGCB will seek, for the first time in our history, to build an endowment to protect the organization during periods of economic fluctuation.
Gifts to BGCB’s endowment are invested for long-term growth. While a fixed percentage of endowment assets will be spent annually, income above that percentage will be reinvested to accelerate growth. An investment committee composed of Board members and other volunteers with strong financial backgrounds reviews performance and works with outside advisors on the investment strategy. With a solid commitment to fiscal accountability, BGCB will be able to maximize the impact this endowment will have on both current and future generations.
Endowment revenue will be used primarily to offset program and operating costs – 70% of which are related to staffing. General unrestricted endowment and named endowment funds that support specific programs and key staff positions are already making a significant difference in creating a more sustainable financial model.
When we began the Campaign, our endowment provided just 1.8% of operating budget. In 2013, when all Campaign payments are completed, and figuring in some modest growth, a $45 million endowment will provide 10% of overall income.
Boys & Girls Clubs of Boston is honored to have received a $1 million challenge grant from The Kresge Foundation that allows us to leverage greater support for our Comprehensive Campaign. BGCB will receive the gift if we raise a total of $4.2 million towards our endowment and facilities goals ($3.1 for endowment and $1.1 for facilities). Provided we reach the goal, the $1 million from The Kresge Foundation will go towards the Blue Hill Club facility renovation. There are naming opportunities still available, from the Club’s new indoor pool to a variety of program spaces and staff positions.
To date, at least 40 donors have given Campaign gifts of various sizes to support the endowment. Donors can add to the unrestricted endowment fund or direct support to a specific core program or initiative (some options are listed below).
- Unrestricted Endowment provides BGCB the greatest flexibility, allowing Board and management to direct financial resources to areas of greatest need. Donors receive an annual report on representative uses of unrestricted endowment income. BGCB has received two $1.5 million unrestricted gifts for endowment.
- Staff Development Fund guarantees resources to recruit, train, retain and recognize the best people to mentor, nurture and educate the young people whose lives we touch. Regardless of what else we offer children and teens, meaningful, supportive, lasting relationships with adults is our most important gift. This fund ensures appropriate salaries and benefit packages that attract and retain top notch staff, professional development and enrichment opportunities that support internal career growth and the assurance that our staff gains the maturity, experience and professionalism our children and teens need.
- Core Program Endowments guarantees resources to support programs in Education; Arts and Culture; Sports, Fitness and Recreation; Technology; Leadership; and Life Skills. Endowments designated for core programming will support staffing in the area of choice and allow for program enhancements as needed.
- Facilities Maintenance Fund, seeded with a $1.5 million Campaign gift, will help support the long-term upkeep of our facilities. Our facilities support a wide variety of programs, are staging grounds for other important social programs, and serve as important resources in the communities where they are located.
A healthy endowment is the key to reshaping BGCB’s financial model and providing BGCB with the solid financial platform needed to advance our mission.
To make an endowment gift, please contact Kathy Sheehan, Vice President, Development, at 617-994-4712.