vision2020@moscow.com: Endow the pool?

Endow the pool?

Charle5170 (Charle5170@aol.com)
Wed, 25 Mar 1998 20:52:10 EST

Has anyone presented the idea to the donor that instead of a one-time land
purchase, how about setting up a Moscow Aquatic Center Operation and
Replacement Endowment? Invest their cash gift. Use half the annual interest
income (modest at first but ever growing) for operations. Plow the other half
back each year to increase the principal and generate more.

I'm no financial whiz but $350K invested at a paltry 6 percent for 20 years
with only $10K plowed back per year will be worth more than $1.6 million (not
adjusted for inflation). After 50 years we're talking $12.1 million! I
suggest this because in the long term $350K now is peanuts compared to what it
could do---when we need another pool. At some point in time, we can get
recreation off the backs of the property owners, build all the pools we want,
and still generate funds for operations. It won't happen overnight for sure
but it definitely won't happen if all the cash is spent now. And besides, the
donor's intent will then live forever.

Charlie Powell


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