Giving to Covenant

As an independent school, Covenant Christian Academy has two forms of operating income: tuition and charitable contributions.
 
Contrary to popular belief, tuition does not cover the full cost of educating each student. It takes a combination of tuition and charitable donations to provide the distinctives that independent school education offers: small classes, exemplary teachers, resources that many public schools cannot offer, exceptional offerings in exploratory subjects, more personal attention, an unapologetically Christian environment, and so much more.
 
Paying tuition gives your child access to all of this. Charitable gifts are necessary to help sustain and expand it. In addition, charitable contributions support the Financial Aid Fund, capital projects, special programs, and endowment.
 
Ways of Giving
 
Annual Fund Campaign
Designed to kick off each fall, the Annual Fund Campaign raises unrestricted money to support the operating budget, which includes instructional materials, programming, equipment and technology, as well as faculty salaries, faculty development and facility maintenance. The AFC is the primary means to make up the difference between what is paid in tuition and the real cost of educating each student. The Annual Fund is tax-deductible where tuition is not. Gifts to the Annual Fund also help the Financial Aid Fund.
 
Major Gifts
Major gift contributions support specific projects, equipment or programs (typically capital needs that are not part of the operating budget). Major gifts may not always be associated with a capital campaign. For more information on major gift opportunities, please contact Vicki Best, Business Manager, at 978-535-7100 ext. 28, or by email at vicki.best@ccamail.org.
 
Capital Campaign
Held periodically to fund capital projects such as building expansions, capital campaigns are project-specific endeavors that do not supersede the Annual Fund Campaign; they are held concurrently.
 
Financial Aid Fund
Tuition assistance for deserving students is a need at Covenant. A Board approved portion of the CCA budget makes up the Financial Aid Fund.
 
Charitable contributions toward this fund are greatly needed and greatly appreciated. However, contributions cannot be designated for specific students. All donations toward this program go into the general Financial Aid Fund. The donations are pooled with existing funds to allocate to students in need who have applied for aid and have met the criteria.
 
Endowment
An Endowment is a permanent fund that is created for the perpetual upkeep and benefit of an institution. Endowment funds are invested so that a portion of the income is used for operations or other specified purposes, but the majority (or principal) stays intact. Most organizations that have created large endowments have done so over a long period of time and through ongoing work. The largest endowments are usually built through working with donors in the areas of estate planning. For every $1 million in endowment, an organization typically receives $50,000 in annual income.
 
Covenant does not currently have an endowment fund. For an actively-managed endowment account, the School would need a minimum of $750,000. Endowment-specific donations that come in will be kept in a restricted account until an official CCA Endowment Fund is created.
 
Gift Categories
 
Unrestricted Gifts
Gifts without specific restrictions; use determined by the school.
 
Restricted Gifts
Gifts where purpose is designated by the donor (restricted gifts are accepted based on their consistency with the school’s mission, goals and priorities).
 
Gifts in Kind
Gifts of tangible personal property that are in good condition, useful in educational programming, and/or readily salable. It is the donor’s responsibility to place a value on an in-kind gift for tax purposes.
 
Honor/Memorial Gifts
Gifts in honor or in memory of an individual(s) or family. The Business Office will notify the honoree(s) and/or the family of those remembered. Efforts involving the physical placement of a plaque, tree, or other items in memorial or tribute of someone must be submitted for approval to the Business Office and be coordinated with the overall campus plan for donor recognition.
 
Naming Gifts
Naming gifts should equal at least 51% of the total construction costs of a facility, and are accepted based on their consistency with the school’s mission, goals and priorities. A similar formula is used for the naming of rooms or other sections of a facility.
 
Gift Management
 
Acknowledgement of Gifts
All donations to Covenant should be submitted to the Business Office. The gift will be entered into the school’s donor management system and the check or cash will be processed by the Business Office for deposit. The Business Office will acknowledge and thank all donors promptly for their support, either by receipt, letter, telephone call or all three.
 
Pledges
A pledge will be considered a gift to Covenant only if it is documented in writing with a signature, a specific dollar amount, and a fixed payment schedule. A pledge does not provide the donor with an income tax deduction until the year in which it is paid.
 
Stewardship of Gifts
Covenant will use gifts as donors request and will update donors regularly on the usage of their gift. In addition, CCA will notify donors if we cannot continue to honor the intent of their gift.
 
Confidentiality
Based upon the donor’s preference, the Business Office will ensure privacy and confidentiality regarding any large gifts, anonymous gifts, inability to fulfill a pledge and potential future gifts.