History and Overview
Once the dream of establishing an endowed fund to assist in funding NCHSAA Championships and special programs became a reality, the issue of how to raise money became a major undertaking.
When deciding upon how funding should be secured, the regional and state committees desired to involve as many school personnel as possible. After much deliberation and input from these endowment committees, the NCHSAA Board of Directors opted to raise money for the fund through three primary methods:
• a $1.00 surcharge on playoff tickets;
• an additional five percent (5%) from playoff revenue;
• an opportunity solicitation.
The Board imposed a three-year time period (1991-92, 1992-93, 1993-94) during which funds would be generated by these three (3) methods. Over the three-year period, the $1.00 surcharge generated $1,031,772.99; the additional 5% from playoff revenue generated $183,925.17; and the opportunity solicitation generated $745,779.30. The total amount generated was almost $1.3 million.
After the initial three-year period, the Board discontinued the $1.00 surcharge and 5% playoff revenue sources of funding. Ongoing opportunity solicitation continues to be a source of funds. In 2000-2001, the Board reinstated the $1.00 surcharge on playoff tickets and this effort will continue until the Board decides otherwise.
More about Endowment Inception
Governing, Procedures and Rules
The endowment fund is overseen by the NCHSAA Board of Directors through the Finance Committee. At two Board meetings held during the course of each school year, the Committee reviews reports provided from the NCHSAA staff, makes recommendations as necessary, and reports to the full Board for any necessary action.
The Board serves to guarantee that the endowed funds are used in an integral manner and within the established guidelines. Furthermore, the Board assumes the responsibility, along with NCHSAA staff, of determining the future direction of these funds - its role, its stability, its enhancement, and ultimately - its success.
The following rules and procedures were developed by the initial NCHSAA Endowment Board of Trustees for the purpose of regulating the endowment fund.
- Endowment funds may only be used to support NCHSAA activities and programs.
- Funding to support NCHSAA activities and programs may only come from net interest earned* on investments made through restricted donations from private individuals, businesses, and foundations.
- If donations to the principal do not equal the inflation rate for the current fiscal year, interest from the earnings shall be used to increase the principal.
- Funding for NCHSAA programs/services will be provided ‘as needed’, up to the amount that is requested and approved by the Board
(Interest earned +/- realized/unrealized gains)
- Requests for use of funds will be made by the NCHSAA Commissioner and can be made at any time during the fiscal year. Requests will be made to the Board of Directors through the Finance Committee and/or the Executive Committee and must be approved before funds can be dispersed.
- Requests for funding will be considered after careful review of interest earned from the previous year. Interest earned is reported after the annual external audit conducted in the fall (August-September).
- The budget request time period will be the fiscal year July 1 through June 30 of the following year.
- All approved budget funds not spent during the budget time period will be deposited back into the endowment fund.