Returns from the endowment foster Financial Aid, Christian Life enrichment programs, Teachers and Student Excellence projects, Academic Support, as well as provide for campus Facility Care and sustainability.
However, there is a common misconception that endowments, including GAC’s, can be accessed like bank accounts, used for anything at any time as long as funds are available. In reality, GAC’s flexibility in spending from the endowment is limited by the fact that it must be maintained in perpetuity and that it is largely restricted (some permanently, some temporarily).
Endowment gifts are intended by their donors to benefit both current and future generations of students. As a result, GAC is obligated to preserve the purchasing power of these gifts by spending only a small fraction of their value each year. Spending significantly more than that over time, for whatever reason, would privilege the present over the future in a manner inconsistent with an endowment’s fundamental purpose of maintaining intergenerational equity.
In addition, many faithful donors designate a specific purpose for which their fund can be spent. GAC is also blessed by endowment gifts that are undesignated, leaving the opportunity for GAC to use those funds where they are most needed.