Sign In Forgot Password
Home

Temple Beth El Blog

How Endowments Help Our Budget

04/24/2023 12:41:06 PM

Apr24

Throughout March, TBE staff and their committees finalize their budget requests for the upcoming fiscal year, which starts on July 1. You can read more about the budget process here. 
As we crunch the numbers, we are mindful that an important source of revenue comes from the interest income from our endowments. Here is how our endowments provide income: 

  • An administrative fee: 2% of the average balance of each endowment is taken as revenue. These funds help cover the expense of the bookkeeping and maintenance of these funds. In the fiscal year 2024 budget (starting on July 1, 2023), this totals just over $65,000.
  • A distribution fee: 2% of the average balance of each endowment is taken as revenue to be used for the restricted purpose of the fund. For example, the purpose of the Blotner Family Music Fund is to “enhance liturgical and other music activities at TBE.” The distribution fee from this fund helps cover the cost of a piano accompanist at worship. The distribution fees provide $65,000 to help our budget.

The permanently endowed funds not only help our annual budget, but, because they continue to grow, they offer a source of income for the future. Donating to our existing endowed funds (including the Yerusha Fund and the Larry Kohn Chair for Jewish Learning), or to new endowments such as the Endowment for Spiritual Learning, helps Temple Beth El’s financial security both now and in the future. Your generous support of TBE’s endowments allows us to continue our forward-facing vision, looking toward a strong and vibrant future. 

May 5, 2024 27 Nisan 5784