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%) share from playoff revenue;
• an opportunity solicitation (letter-writing campaign to individuals, groups, etc.).
The Board of Directors imposed a three-year time period (1991-92, 1992-93, 1993-94) during which funds were generated through these three (3) methods. Over the three-year period, the $1.00 surcharge generated $1,031,772.99; the additional 5% share from playoff revenues 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 of Directors discontinued the $1.00 surcharge and 5% playoff revenue sources of funding. In 2000-2001, the Board of Directors reinstated the $1.00 surcharge on playoff tickets and in 2020-2021, the current Board suspended the $1.00 ticket surcharge indefinitely. Annual donor solicitations remain as a fundraising source.
More about Endowment Inception
Oversight, Guidelines & Procedures
Oversight of the NCHSAA Endowment Fund is the fiduciary responsibility of the NCHSAA Board of Directors, specifically through the Finance Committee. An Endowment Advisory Committee was established in the summer of 2021 to provide additional outside review of the Endowment Funds and their distribution, and to make recommendations to the Finance Committee and Board of Directors. This Endowment Advisory Committee is charged with implementing the approved Spending Policy in determining annual distributions from the General Endowment Fund and the Education/Heath & Safety Fund.
The Endowment Advisory Committee, Finance Committee and ultimately, the Board of Directors, serve to guarantee that the Endowment Funds are used in an integral manner and within the established guidelines. Furthermore, they assume the responsibility, along with NCHSAA staff, for determining the future direction of the Endowment Fund – its role, its stability, its growth, and ultimately – its success.
The following rules and procedures apply:
- Endowment funds may only be used to support NCHSAA, Inc. activities, services, and programming.
- Funding to support NCHSAA activities, services, and programs may only come from Board-designated assets; the principal cannot ever be distributed.
- 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 activities, services, and programming can be distributed ‘as needed’, up to the amount that is requested and approved by the Board of Directors as long as the distribution amount adheres to the approved Spending Policy.
- The Endowment Advisory Committee will annually review the previous three consecutive year fund values and determine the 3-year average.
- The 3-year average value will be used in determining distribution amounts from the various funds.
- The Committee will utilize the approved Spending Policy and make recommendations to the Finance Committee and full Board of Directors.
- If approved, the NCHSAA staff will disburse the funds according to the recommendations.