Financial Information

The NCHSAA is a 501 (c) (3) non-profit corporation generating funds to promote and direct interscholastic athletics for its member schools and to provide opportunities for North Carolina student-athletes. The main sources of revenue for the NCHSAA annual operating budget come from revenue shares in playoff/championship contests, corporate support, membership dues, and officials’ registration. The NCHSAA does not receive funding from member schools’ regular season contests or direct funding from tax or State funds.

NCHSAA Financial Documents
Endowment Fund

2023-24 Approved Budget

Financial Statements

IRS 990s

Link to search Tax Exempt Organization

Note: “Other expenditures for facilities/programs” line includes education-based grants, year-end endowment interest distributions to member schools, student scholarships, and administrative awards plus the $4 million CAPS provided in 2020-2021; Data comes from official 990 forms; 990s for years before 2021-22 can be found on IRS.gov website)

The Endowment Funds were established in 1991 and managed by the NCHSAA.

In May 2023, the NCHSAA Board of Directors approved the creation of the NCHSAA Foundation, Inc., a separate 501c3 entity, and these endowment funds are now managed under the Foundation and a Board of Trustees beginning with the 2023-24 school year.

2022-23

2022-23 Year-End Endowment Distribution Information

What is the distribution formula for 2022-23?

The Endowment Advisory Committee initially recommended a 5% distribution of interest earnings from the General Endowment Fund amounting to a total of $1,069,728.37. After backing out funds for general grants and subsidies for Gainey and Bradshaw Scholarships, the distribution amount was determined to be $959,679.46.

Determining the Constant
2022-2023 ADM numbers were used to calculate what dues were paid by each member school.
Total ‘dues’ amount ($459,292.00) was subtracted from the determined distribution amount.
The resulting balance was then split evenly between all schools (and rounded up) to determine the ‘Constant’ (n=$1,163).

Determining the Adjusted Base
1.     Using ISP% for each member school for last three years (2020, 2021 2022), ‘Average ISP%’ was calculated (Note: ISP data from SDPI; if a school did not have an ISP, 1.0 was used in calculations.).
2.     ISP% was multiplied by .01 and then 1.0 was added to determine ‘ISP Multiplier’.
3.     The ‘Constant’ was multiplied by the ISP Multiplier’ and result was divided by 1.395 to determine the ‘Adjusted ISP Base’ amount.
Distribution to each school = Constant + Adjusted ISP Base

2021-22

2021-22 Year-End Endowment Distribution Information

What is the distribution formula for 2021-22?

The Endowment Advisory Committee initially recommended a 7% distribution of interest earnings from the General Endowment Fund. However, given the economic situation in spring 2022 (war on Ukraine, market volatility, residual Covid effects, etc.), the Board approved a 5% distribution amounting to $1,142,673.95. After backing out funds for the education-based grants and subsidies for Gainey and Bradshaw Scholarships, the distribution amount was determined to be $997,416.62.

Determining the Constant
1. 2021-2022 ADM numbers were used to calculate what dues would have been paid by each member school if dues had not been waived in 2021-2022 school year
2. Total ‘dues’ amount is subtracted from the determined distribution amount.
3. The resulting balance is then split evenly between all schools to determine the ‘Constant’
(n=$1,302.46).

Determining the Adjusted Base
1. Using ISP% for each member school for last three years (2019, 2020 2021), ‘Average ISP%’ was calculated (Note: ISP data from SDPI; if a school did not have an ISP, 1.0 was used in calculations.).
2. ISP% is multiplied by .01 and then 1.0 is added to determine ‘ISP Multiplier’.
3. The ‘Constant’ is multiplied by the ISP Multiplier’ and result is divided by 1.61 to determine the
‘Adjusted ISP Base’ amount.

Distribution to each school = Constant + Adjusted ISP Base

2020-21

2020-21 Year-End Endowment Distribution Information

What is the distribution formula for 2020-2021?

The Endowment Advisory Committee recommended, and the Board of Directors approved, that 7% of the 3-year average of General Endowment total values be distributed to the member schools utilizing a distribution formula to calculate each school’s share. The distribution formula was as follows:

Determine the Constant
1. Take 2020-2021 ADM number and add $100 admin. fee for each school = ‘Membership Dues’.
2. Add total ‘Membership Dues’ amount and subtract from determined distribution amount.
3. Split the resulting balance evenly between all schools to determine the ‘Constant’.

Determine the Adjusted Base
1. Using ISP% for each member school for last three years (2017/18, 2018/19 2019/20), determine ‘Average ISP%’. (Note: ISP data from SDPI; if a school did not have an ISP, 1.0 was used in calculations.)
2. Multiply ISP% by .01 and add 1 to get ‘ISP Multiplier’.
3. Multiple the ‘Constant’ by I’SP Multiplier’ to determine ‘Adjusted Base’ amount.
4. Add Adjusted base amount to Membership Dues amount for Distribution per school.