Colleges, universities, non-profit organizations, churches, etc., have been using endowment funds for thousands of years going back to the time of 1st century Roman Emperor Marcus Aurelius. These funds hope to keep their principal amounts intact while using investment income, or interest, for operating expenses, charitable endeavors, etc. Some of the largest endowments belong to Harvard University ($56 billion), Kaiser Foundation Hospitals ($20 billion), and the Ford Foundation ($10 billion).
The typical use for endowment funds are to support organizational, annual operating expenses. Let us say your organization’s annual operating budget for charitable endeavors is $20,000 a year. Assuming a 5% return, you would have to have an endowment fund of at least $400K (400,000 x .05 = 20,000). For the typical biker MC, you might optimistically hope to support charitable endeavors of $1k – $5K per year. If this were the case, and assuming the same 5% return on investment, the club would need an endowment fund of $20K – $100K. Here is the bad news, I do not know of a bank today giving 5% on a savings account (the usual precursor to investment based endowment funds). Our bank pays a whopping 0.010%. That means for our annual charitable endeavors to reach $1K, we would need an endowment fund of $100K. Say what!!! The task seems daunting.
Charity giving clubs spend what they collect either through monthly/annual dues, fund raising efforts, etc., and have nothing, or little, left at the end of the year. They simply go into each riding season hoping to raise more money than they did the previous year, or at least as much, while hoping to increase membership or, at least, keep the members they have.
The Brothers of Ares VET/LE MC have determined to provide fellowship, camaraderie and a supportive environment for like-minded law enforcement, veterans, first responders and other motorcycle enthusiasts while seeking out and participating in charitable endeavors. We move forward with the fighting spirit of Ares to overcome challenges while exhibiting honor, integrity, duty and service to others. In short, we fight from the depths of our being to overcome challenges placed before us and we do not give up and we do not give in; we fight the good fight, we finish the race, and we keep the faith (2 Tim. 4.7).
That said, we plan to be around for a long time and we will build our endowment fund so riders coming up behind us will have the necessary means to contribute and participate in whatever charitable endeavors they see fit.
The Brother of Ares VET/LE MC Legacy Fund has three levels either of donors who contribute a lump sum or in monthly installments:
1. Gold Legacy Member – $1,200/$100 per month.
2. Silver Legacy Member – $600/$50 per month.
3. Bronze Legacy Member – $300/$25 per month.
We will even make room for those wishing to contribute up to $10K also in either lump sum or monthly!
Founder and President,
Rooster
“You have to set goals that are almost out of reach. If you set a goal that is attainable without much work or thought, you are stuck with something below your true talent and potential.” – Steve Garvey (American professional baseball player)
Comments