Report on Philanthropy
Everything that Mercersburg Academy is and does is enhanced by the incredible generosity of the alumni, parents, and friends who invest in our school every year.
- 2023-2024 ANNUAL GIVING SUMMARY
- WHY MERCERSBURG’S PHILANTHROPIC MODEL IS SO IMPORTANT
- ENDOWMENT PERFORMANCE OVERVIEW
2023-2024 ANNUAL GIVING SUMMARY
WHY MERCERSBURG’S PHILANTHROPIC MODEL IS SO IMPORTANT
WHY MERCERSBURG'S PHILANTHROPIC MODEL IS SO IMPORTANT
The school’s financial model is comprised of three primary elements:
Tuition supports direct costs associated with educating students that are not already underpinned by other sources. For the 2024-2025 academic year, there is a gap of nearly $14,000 per student between tuition and the true cost of a Mercersburg education. That gap is bridged by philanthropic support through the endowment
and the Annual Fund.
The endowment is made up of hundreds of funds provided by generous alumni, parents, and friends of Mercersburg. Each of these donors decides how the school will utilize their endowed gift (e.g., financial aid, faculty professional development, athletics, the arts, unrestricted, etc.). The principal of the fund is not spent,
but rather a percentage (currently 3.75) of the 12-quarter moving average of the fund’s market value on June 30 of the previous fiscal year. This helps to smooth any fluctuations in market values and allows for a stream of income in perpetuity for the purpose expressed by the donor.
The Annual Fund provides ongoing support on a year-to-year basis to cover needs above what tuition dollars and the endowment supply. Without an Annual Fund (approximately $4 million annually), the school would need an Immediate influx of more than $100 million in endowed funds and/or to unsustainably raise tuition dollars to Produce the same services Mercersburg is able to provide each year.
Each of these three elements serves an important role to ensure Mercersburg’s robust academic and extracurricular offerings, highly trained faculty and staff, speakers of national prominence, international travel opportunities, and more.
2024-2025 Budgeted Revenue
In addition, private support makes possible all new buildings and spaces so the school’s facilities can furnish a compelling and inspiring backdrop to Mercersburg’s incredible programs, while also serving the practical needs of talented faculty. Philanthropy ensures that no tuition dollars are ever circumvented from student-centered needs to establish the spaces where learning takes place.
Mercersburg is proud of its ability to rely upon the generosity of those who know the school best and that its financial model allows students to receive one of the best educations available.
ENDOWMENT PERFORMANCE OVERVIEW
Endowment Performance
We are pleased to provide this report on the Mercersburg Academy endowment for the fiscal year ending June 30, 2024.
Thanks to the generosity of donors and the stewardship of the Board of Regents’ Investment Committee, we are able to carry on the mission of Mercersburg Academy and offer a strong and vibrant education to 450 students from across the country and around the world.
All data as of June 30, 2024.
Value
The purpose of the Mercersburg Academy endowment is to support the people, programs, and activities of the school in perpetuity. Over the years, growth of the endowment through investment returns and philanthropic support has enabled the school to offer financial aid to qualified students, to attract, retain, and develop an excellent faculty, and to provide programs that enrich the lives of the entire Mercersburg community.
Fiscal Year Endowment Return
Number of Endowed Funds
Gifts to Endowment
Returns
The long-term performance of the endowment is critical to the school’s financial health. The three- and 10-year returns have all exceeded their respective benchmarks.
Performance
The endowment is managed in accordance with the Investment Policy Statement last amended by the Board of Regents on May 13, 2022. The investment objectives of the endowment are the preservation and enhancement of the endowment’s inflation-adjusted purchasing power in order to provide a stable flow of support for the school’s annual operations while preserving the purchasing power of the endowment in perpetuity