A Guide for Gifts & Bequests for Loma Linda Contributors
Named Gift Opportunities
Opportunities exist for perpetuating your name and/or the
name(s) of others you wish to honor or memorialize through gift support. Loma
Linda University, Loma Linda University Medical Center, and Loma Linda
University Children's Hospital offer many avenues for those who wish to
associate the name of a family or respected individual with a project or program
of enduring worth. Naming gift opportunities are available for gifts ranging
from $10,000 to well over $1,000,000. The following are a few examples of named
gift opportunities and the gift guidelines that apply.
Endowments
Endowed Scholarships An endowed scholarship for any educational program at Loma Linda is a perpetual fund. The fund's principal is invested. The income from such a fund may be awarded to a designated student recipient and be spent for tuition, books, supplies, equipment, or library expenses.
A named endowed scholarship may be established with an initial gift of $5,000. However, such an endowment must reach minimum funding of $10,000 within a reasonable time period. Until an established endowed scholarship is fully funded, only one-half of the available income will be distributed annually.
Please also refer to the section on Policies Governing Use of Earnings for a more detailed description on how Loma Linda determines income distribution. This section also details the ways used to foster endowed funds' growth.
Endowed Funds
An endowed fund is also a perpetual fund, with its principal invested and its income used in support of educational, research or clinical purposes. Endowed funds provide for salaries and fringe benefits, general operating expenses or the purchase of equipment and supplies for a program or department in the University, Medical Center or Children's Hospital.
A named endowed fund may be established with an initial gift of $5,000. However, Loma Linda's present guidelines stipulate that such a fund must reach a minimum level of $25,000 within a reasonable time period. Until this minimum is reached, only one-half of the income available will be distributed annually. Again, please refer to the section on Policies Governing Use of Earnings for a more detailed description of income distribution.
Named endowed funds in support of educational, research or clinical programs may be established for any amount considering the guidelines outlined in the previous paragraphs.
Endowed Professorial Chairs
Endowed professorial chairs are supported by perpetually endowed funds. The principal of a major gift in support of a chair is invested and derived income is used to further Loma Linda's academic program. An endowed fund to support a professorial chair may be established within any of Loma Linda University's six schools. Income from such a fund supports a professor's salary and fringe benefits, pensions, research and secretarial expenses and other purposes related to the work of the professorship.
An endowed professorial chair may be established through a gift in cash, a binding pledge, or an irrevocable trust that creates the required fund within a reasonable time period. An endowed chair is established by the University's Board of Trustees upon receipt of 50 percent of the value required by the University for the endowed chair's funding level. Once the endowed chair has been established by the Board of Trustees, it may be listed in official University publications. Until 100 percent of the chair's funding level is reached, all earnings from its endowment will be added to its principal.
The funding level for an endowed professorial chair may be set by the Dean of the benefitting School in consultation with the University Administration. The minimum funding level should be such an amount that a six percent yield or principal will fund the full-time salary of the position being endowed. Presently, for example, it takes an endowment principal of about $1,300,000 to fund a chair in the School of Medicine at Loma Linda University. An endowed chair in the School of Nursing presently requires a principal of about $1,000,000.
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Facility Construction & Other Capital Development
Donors who are interested in making significant contributions for building construction or renovation may wish to consider a great variety of named gift opportunities. The officers of the University, Medical Center, Children's Hospital and Loma Linda University Foundation will work closely with you, the prospective donor, and your advisors to plan, arrange, and appropriately recognize major gifts for capital development projects. Currently relevant examples of named gift opportunities for facilities development include:- Conference rooms in a conference center for the School of Medicine's new academic and research building ($50,000-$175,000)
- Faculty or student lounges in the School of Medicine's new academic and research building ($150,000)
- Cost of the entire building (or a significant wing or portion) for the School of Allied Health Professions (Various gift levels)
- Renovation of the Ricketts Research Library in the School of Dentistry ($200,000)
- Laboratories in the new Cancer Research Institute building ($200,000)
Amounts of any size can be contributed to existing general funds for areas such as student financial aid, faculty development, research, clinical programs, the library or wherever the needs are greatest within a program, department, school, the University, Medical Center or Children's Hospital.
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Policies Governing Use of Earnings
Protection of Principal
Generally, expenditure of
endowment income in any given year will not exceed 70 percent of the previous
year's income yield. If the current year's income falls below what is required
to meet budgeted income payouts, up to one hundred 100 percent of the available
income may be spent. All earnings in excess of the amount paid out will be added
to the principal of the endowed fund.
When a benefiting program,
department or school has exceptional needs, up to 90 percent of the previous
year's income may be used following approval of the program director, department
chair or dean and Foundation management. If current income falls below what is
needed to meet budgeted payout, then 100 percent of the current income may be
expended. If this still does not provide significant funds to meet the 90
percent payout budgeted, then undistributed income from previous years may be
used. In no case will the corpus of an endowed fund be expended.
NOTE:
All endowment income will be used according to the desires expressed by an
endowment's contributor(s). Appropriate program, department, school, University
and Foundation management officers will collaborate in operationalizing endowed
funds of all types. All endowments will be governed by policies established by
the University, Medical Center and Children's Hospital.
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