| Endowment 18:53 - Feb 18 with 1710 views | wheniwasyourage |
Anyone ever thought about setting up an Endowment fund for the club? Any supporters actually have experience of this i.e. work in FS or has it been discussed before?
Would be nice that when the club celebrates it bicentenary, financial certainty is assured though the annual interest on the Endowment.
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| Endowment on 19:42 - Feb 18 with 1603 views | 49thseason |
Not sure endowment funds are possible for Limited Companies, more for charities and not for profits ( which is an apt description of football clubs but I digress) .. People could donate money via their wills as per David Clough and indeed there are ways to encourage this sort of donantion as part of a will writing process for those who have not made one or as a codicil to an existing will.
Maybe the Trust could set up some sort of Endowment fund but to be honest at this stage its probalby more effective to support the club by other means. |  | | |
| Endowment on 11:29 - Feb 23 with 1133 views | wheniwasyourage |
| Endowment on 19:42 - Feb 18 by 49thseason |
Not sure endowment funds are possible for Limited Companies, more for charities and not for profits ( which is an apt description of football clubs but I digress) .. People could donate money via their wills as per David Clough and indeed there are ways to encourage this sort of donantion as part of a will writing process for those who have not made one or as a codicil to an existing will.
Maybe the Trust could set up some sort of Endowment fund but to be honest at this stage its probalby more effective to support the club by other means. |
I don't know.
Appreciate that the timing is poor, but I used AI to calculate a 'what if' scenario. What if:
in 1907, the founders invested the equivalent of £500/week (value of money adjusted, i.e., £500 as of the value based on Feb 2024).
5% annual interest rates
2% drawdown on the annual interest payment
AI says:
Understood, Dave (edit: I am not Dave, it's because I refer to ChatGPT as HAL). If the aim is to grow the endowment while paying out 2% of the 5% annual growth in cash, we're essentially looking at a net growth scenario where 3% of the growth remains reinvested in the endowment each year, and 2% is distributed as a cash payout.
This approach modifies our calculation since we're now applying a net annual growth rate of 3% to the endowment's principal, reflecting the reinvestment after payouts. Let's recalculate the endowment's value up to the end of 2024 with this adjusted strategy.
With the adjusted strategy of growing the endowment while paying out 2% of the annual growth in cash, as of the end of 2024, we find:
The endowment would be worth approximately £28,410,637.
The annual stipend (the cash payout for 2024 based on this strategy) would be approximately £568,213.
In this alternative world, we would never be beholden to SG, MH, or anyone. If we end up having to form a Phoenix club, I'd like to be included so more work can be done on this funding model. As I said, it's a 100-year plan. | | | |
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