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WHAT IS THE IMPACT OF PHILANTHROPY?
Hampden-Sydney’s annual operating budget is financed through several sources. The vast majority of the College’s revenue comes from tuition, room, and board fees. The endowment also supports the operating budget, providing nearly 14 percent of our annual revenue. However, these two revenue sources alone do not fully finance the College’s operations each year, so ongoing philanthropy is a critical element of closing that gap and ensuring H-SC can continue providing students a transformative coming-of-age experience, as well as “the atmosphere of sound learning” emphasized in our mission.
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WHAT IS THE ENDOWMENT AND HOW DOES IT WORK?
Hampden-Sydney’s endowment is a collection of hundreds of individual endowment gifts, both restricted to specific purposes and general use, designed to support the people, programs, and activities of the College in perpetuity. Donors make endowment gifts with the understanding that the College invests the original gift and spends the earnings annually to provide a permanent legacy of support for Hampden-Sydney.
A strong endowment is essential for the College’s long-term growth and sustainability. Our endowment is expertly managed by Spider Management at the University of Richmond and Partners Capital, headquartered in Boston. The value of the College’s endowment has grown from $154 million in July of 2016 to a current level of approximately $216 million. Drawing from the endowment at a rate of 4.5 percent based on a three-year moving average ensures that even as we invest in today’s Hampden-Sydney students, we are also supporting an ambitious future for the College.
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WHAT DOES THE HAMPDEN-SYDNEY FUND SUPPORT?
Gifts to the Hampden-Sydney Fund are among the most immediately impactful gifts supporters can make to the College. Revenue from the Hampden-Sydney Fund covers 5 percent of the College’s annual operating budget, and these unrestricted funds are harnessed during the current fiscal year to advance the College’s mission. These funds support every student, faculty member, and campus program, and allow the president to respond to unexpected needs that arise during the year. These resources cover that gap between tuition and endowment earnings and ensure Hampden-Sydney remains strong and resilient.
What’s the difference?
Think of H-SC as a large investment, like buying a house. You have to make payments on your mortgage, but you also need to keep the electricity on. The endowment is like the long-term investment of mortgage payments, while the annual fund is like the immediate need to pay utility bills.
ENDOWMENT Savings Account Investment Long term Buffer
HAMPDEN-SYDNEY FUND
Needs to increase with the growth of the College Stability during times of recession
Lasting security FOUNDATION FOR THE FUTURE
Checking Account Every year
Pays expenses not covered by student tuition
Short term
Accessible
Small gifts making a large impact
Available to use Reoccurring
IMMEDIATE NEEDS
View THE RECORD online at record.hsc.edu
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