MidwayUSA Foundation Forever Endowment
The MidwayUSA Foundation was established to fund youth shooting teams and ensure those funds allow youth shooting sports teams to be around forever. The functions of the Foundation are critical for supporting each of the organizations that hold an earmarked endowment with us. For that reason, we too have an endowment to ensure our future…the MidwayUSA Foundation Forever Endowment. Since our establishment, Larry and Brenda Potterfield have donated every dollar for our operations. Their contributions cover our software, computers, staff salaries, paper, desks, office space, fundraising products, grant and donation processing, and more. There is no question of their commitment to youth shooting sports. Like any visionary organization, we need to have a plan for the future. Our Board of Directors, Foundation staff, and our Chief Investment Officer, Goldman Sachs, have put a plan in place to help us reach $30 million in our Forever Endowment over the next five years.
To reach this overall funding goal of $30 million, we’ll use a combination of three funding sources.
Annual Potterfield Family Donations
annual 1% Contribution from all Endowments [.25% quarterly]
Like your team, in our future, our Board would request a 5% cash grant each year to cover our Foundation operation expenses. Five percent of $30 million is $1.5 million, which was our 2018 operating budget, not to include fundraising products. By growing the MidwayUSA Foundation Forever Endowment, we are taking one more step in ensuring your youth shooting sports team is funded FOREVER.
MidwayUSA Foundation is a qualified public charity, exempt from Federal and State income tax under Section 501(c)(3) of the Internal Revenue Code. Donations are tax-deductible under Section 170 of the Code. Donations made to the MidwayUSA Foundation Forever Endowment (FFU4039) are restricted and the property of the MidwayUSA Foundation, under the control of the Board of Directors. Please see specific information related to contributions in our donation policy at https://www.midwayusafoundation.org/policies/. Donations to this endowment do not qualify for matching funds.
The MidwayUSA Foundation Board of Directors takes its fiduciary responsibility very seriously and has developed a robust investment portfolio, focused on long-term growth, with world-class guidance from Goldman Sachs. Due to fluctuations in the investment market, endowment earnings may be positive or negative. The MidwayUSA Foundation posts earnings to all endowments quarterly.
From June of 2017 to February 2018, our Board of Directors, Foundation staff, and our Chief Investment Officer, Goldman Sachs, worked to develop a strategy that would help us reach our goal using our current strengths, Potterfield generosity and investment power, as well as using the cumulative totals of all of our endowments to add an additional funding source. It was important that final plan to grow our Foundation Forever Endowment have a minimal impact on the endowments we hold for thousands of shooting programs. We are confident the Board of Directors plan accomplishes that.
The motion passed by the Board of Directors on February 12, 2018. The first allocation took place the first week of April 2018, after the conclusion of the first quarter. The reallocation will occur the first week after a calendar quarter closes.
No. To ensure minimal impact on all of our funded endowments, the Foundation will reallocate 0.25% of an endowments balance each quarter, which will total 1% for the year.
While we did project in early 2018 that it will take 5 years to reach $30 million, the annual contribution from all endowment accounts will end when the Foundation Forever Endowment reaches $30 million, regardless of the time it takes to get there. However, the MidwayUSA Foundation Board of Directors has the authority to change or extend the contribution at anytime.
The quarterly contribution is calculated on your endowment balance as of the last day of the quarter. It will show as an expense/deduction on your account. The MidwayUSA Foundation values transparency and will not hide the contribution. Each contribution will be shown on an endowment statement that may be requested from the Foundation.
It will provide the minimal operational annual funding for the MidwayUSA Foundation when Larry and Brenda Potterfield are no longer funding 100% of Foundation operations. In support of your endowments, Foundation staff and our services will be here FOREVER to manage investments, process grants, manage donations, provide a website, and continue our mission to help communities and organizations raise funds to support their high school, college, and other youth shooting teams and activities.