FAQ 

ANNUAL GIVING
What it is: Money for the school's current - year operating expenses. Annual gifts make up the difference between what tuition covers and the actual cost of running the school. Such gifts are usually unrestricted (meaning that the donors allow the school to spend them on whatever it deems necessary) and almost never spent on items outside the operating budget.

Its practical equivalent: A checking account that helps the school accomplish its daily work. What it buys: Teacher salaries and benefits, but also library acquisitions, teaching tools, educational technology and equipment, continuing education for staff, and such necessities as light bulbs.

CAPITAL GIVING
What it is: Major gifts to meet building and endowment needs the school cannot pay for out of tuition funds.

What it buys: Usually brick - and - mortar building projects - new facilities or major renovations - but sometimes endowment as well.

When you'll be asked for a capital gift: Schools tend to conduct capital campaigns once or twice a decade. Because the needed gifts are large, you can usually pay your pledge over three to five years.

Why the school asks for an annual gift even while you're making a capital gift: For the same reason you have to pay your mortgage while you're putting an addition on your house. The school must continue to meet its operating costs even as it's making major acquisitions and improvements.

ENDOWMENT GIVING
What it is: Major gifts to a fund that takes the pressure off the operating budget. Endowment principal remains intact as the school spends a percentage of the interest income. Long - established boarding schools with strong alumni donor bases tend to have larger endowments than day schools, though most day schools are working hard to increase theirs.

Its practical equivalent: A savings account. Most schools have a policy about how much endowment income they'll spend each year so they don't invade the principal.

What it buys: The security to invest in faculty compensation or new faculty positions (often called endowed chairs), funds for professional development, enriched academic programs and resources, and financial aid.

GIFTS IN KIND
What they are: Donations of needed goods and services rather than money. These could be vehicles, computers, musical instruments, carpentry, printing services, etc.

Caveat: Schools must avoid accepting items that they can't make good use of or that would cost too much to maintain or store. And because of the complicated rules and regulations about valuation and tax credits, you must be sure to consult with a tax expert before giving.

MATCHING GIFTS
What they are: As an employee benefit, more than 550 American corporations match their staff's philanthropic contributions. Matching gifts allow you to double or triple your gift to a school.

How they work: After confirming that your employer is indeed a matching gift corporation, get a matching gift form (usually from the human resources department), fill it out, and send it to the school with your gift. The school's advancement office then submits the form to the company's matching gift department, which sends the check directly to the school.

PARTICIPATION
What it is: The percentage of parents and alumni who give a gift of any size to a school. All independent schools aim for 100 percent participation in the annual fund.

Why it's so important: High participation is a vote of confidence, a sign that parents and alumni invest in their children's welfare and support the school's mission. This percentage can also have an impact on gifts from outside sources; most foundations consider parent participation rates before agreeing to donate funds to a school.

PLANNED GIVING
What it is: A gift vehicle that allows you to donate via a trust, annuity, insurance policy, or, most commonly, a bequest.

Its practical equivalent: A retirement account - money to secure the future.

The ideal planned gift donors: Those in their 60s, 70s, or 8Os who believe in giving back for the benefit of future generations, want to leave something as a link to posterity, or can make a bigger gift in death than during their lifetimes.

Caveat: Before naming Montverde Academy in your will or considering another kind of planned gift, consult with an attorney or financial adviser to explore what type of planned gift is best for you and your family.

RESTRICTED AND UNRESTRICTED GIVING
What they are: Restricted gifts can be spent only for a specific purpose you designate, such as financial aid or a particular academic program. Unrestricted gifts can be spent where the school believes the need is greatest.

How to think about restricted and unrestricted giving "An unrestricted gift is the highest form of philanthropy It helps the school most because it gives the school the freedom to place the money where, in the wisdom of the board, it will serve the best purpose. This is not to discourage you from giving where your passion lies. But think broadly" - Tracy Savage, former assistant head of school for development and public relations at National Cathedral School in Washington, DC

For more information on ways to give, please check out the NAIS guide "Gifts That Give Back".