Established in 1993 with an initial investment of $7.4 million from the school, the Foundation has grown to more than $66 million through careful financial management and ongoing philanthropic support. Led by a Board of Directors, including members of the Graland Board of Trustees, the Foundation oversees the investment and distribution of funds that strengthen the school each year.

Understanding how the endowment works—and the role it plays in Graland’s financial health—offers a meaningful look at how the school continues to build a strong foundation for the years ahead.

 

The Foundation distributes 4% of its trailing five-year average audited net asset value to Graland each year in four quarterly payments. The five-year smoothing of distributions allows the Foundation to capture the returns of an equity portfolio while not subjecting the distributions to Graland to the short-term volatility of equities.

In the fiscal year 2024-25, the Foundation distributed $2.27 million to Graland. Over 32 years, the total amount distributed to Graland by the Foundation totals $36 million.

A: An independent school endowment is a pool of financial assets, originating from charitable donations that are invested with a long-term perspective. Independent school endowments:

 

A: Endowment distributions are a critical part of the financial model of independent schools like Graland. The endowment’s principal is invested for long-term appreciation, while a portion of investment earnings is used annually to support the school’s mission. Coupled with the Graland Annual Fund, the school endowment’s annual distributions make up 14% of the school’s operating costs, with tuition covering the other 86%. In contrast, schools with little or no endowment income put tremendous pressure on tuition levels as the primary revenue source.

 

A: An endowment is a long-term investment; income from the endowment supports the school over time. It is like a retirement annuity that must provide income every year for the remainder of the owner’s life. Contributions to the Annual Fund, on the other hand, are used immediately to support operating expenses in the current fiscal year. The annual fund is akin to a school checking account.

A: Much of Graland’s endowment is unrestricted, meaning that distributions can be applied toward the school’s greatest needs on an annual basis. Other restricted gifts support financial aid, faculty compensation, other faculty support, professional development, the McCaffrey Early Childhood Learning Center (ECLC), campus preservation, and various programs.

 

A: The investment philosophy of the Foundation, since its inception, has been based on a long-term view. The Foundation’s financial goal is to deliver CPI + 4.5% over the long term.  

 

A: As of June 30, 2025, the Graland Foundation assets totaled $66,394,908.

 

A: Donations of all sizes are appreciated. Over time, more than 1,250 donors have made gifts to Graland’s endowment. 

 

A: Yes, gifts to the Graland Foundation are 100% tax-deductible.

 

A: All contributions to the Graland Foundation are donated directly to the school. Gifts of cash and securities are welcome, and contributions can also be made over multiple years. Graland’s development office records donors, donations, and pledges, and then forwards the funds to the Foundation. Every gift plays an important role in strengthening Graland’s future, and the school is deeply grateful for the continued generosity of its community.