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Endowment Funding and the Start of Fiscal Year 2026

06/26/2025 10:35:09 AM

Jun26

Temple Beth El’s new fiscal year (FY 2026) begins on July 1, 2025. The Board of Trustees passed the FY 2026 budget at its April meeting. 
Quick facts about our FY 2026 budget:

  • We have budgeted almost $900,000 in revenue. Much of this comes from you, our members, through sources including annual contributions, Religious and Hebrew School tuition, and tribute and memorial donations. 
  • We also receive revenue in the form of rental income for the cell tower located on our roof, fundraising through our sponsorship program, and High Holy Day guest entry cards. 
  • 27% of the funds needed to pay for our $1.6 million in expenses comes from our endowed and restricted funds. We receive some of this funding at the beginning of the fiscal year (July 1) and much of it throughout the year as the expenses are incurred, as detailed in the following sections.  

Endowed Funds Administration Fee

TBE’s administration fee guideline for our endowed funds transfers 2% of the average of these funds to general operations of TBE to cover the management, reporting, and maintenance of these funds and other expenses as needed. These endowed funds include the Endowment for Spiritual Leadership, the Yerusha Fund, and the Larry Kohn Chair of Jewish Learning Fund. For FY 2026 the 2% administration fee total is almost $121,000.

Endowed Funds Distribution Fee

In addition to the administration fee, we take up to a 2% distribution fee from all of our endowed funds when they are used according to the purpose designated when the fund was created. For example, the distribution fee for the Larry Kohn Chair of Jewish Learning Fund is used to help fund the payroll for our Religious and Hebrew School teachers. The 2% distribution fee for the Endowment for Spiritual Leadership is applied to the compensation of our clergy. These distributions are allocated throughout the fiscal year as those expenses are incurred. 

In addition to the distribution fees from our permanently endowed funds, we receive funds from temporarily restricted funds such as our security fund (to pay for Madison Police Department presence) and other funds that members have set up to help pay for specific expenses. 

Funds Received on July 1

The purpose of the Yerusha Fund is to “provide a stable and growing source of support for Temple Beth El’s programs and services.” This fund is meant to supplement revenue for TBE expenses. Because of this, the 2% distribution for this fund ($23,029) is taken at the beginning of each fiscal year, on July 1.

On July 1, Johnson Financial Group, which holds these funds for TBE, disburses both the 2% administration fee from all endowed funds and the 2% distribution fee from the Yerusha Fund. This total is $143,765. The other distributions are requested from Johnson Financial Group throughout the year. 

Thank You!

Thanks to the generosity of those who created these funds in years past, and thanks to all of your generous contributions, TBE is able to provide the quality programs and services we all benefit from. 

June 28, 2025 2 Tammuz 5785