Endowment Gifts

make life better for children today, tomorrow and forever

By establishing endowed funds, donors can ensure that Children’s Health will have income in perpetuity to continue meeting the needs of the children we serve.  

Endowments are established to provide ongoing support for a project, program or need that is close to a donor’s heart. Contributions are invested to generate earnings, and each year, a portion of the earnings (as determined by the spending policy adopted by the board of Children’s Health) will support the designated purpose of the gift. Earnings in excess of the spend amount are reinvested, allowing the principal to grow. As the principal grows, earnings will also grow, providing an ongoing source of support. 

A minimum gift of $50,000 is required to establish a new endowment at Children’s Health. Funds can be added to the endowment at any time. Donors can also become part of a collective endowment with a gift of any size. Collective endowments support clinical research, mental health and the general fund. 

investment policy

The Investment Office at Children's Health manages the financial assets of the health care system, which include board-designated reserves in the form of a quasi-endowment and donor funds entrusted to Children's Health in perpetuity. 

The Foundation's substantial investment portfolio offers a wide array of opportunities for active investment management, giving us the opportunity to partner with talented external fund managers to identify profitable investment opportunities greater than what the broader stock and bond market can provide. Active management goes hand-in-hand with diversification across investment mandates, investing styles, geographies and asset classes. The combination of active management and diversification allows us to strive for superior investment results over time. 

The four pillars of our investment approach — our long-term horizon, active management, diversification and awareness of risk — are meant to uplift the mission of Children's Health. For the Investment Office and its stakeholders, our first duty of care is as fiduciaries for the financial interest of the hospital system and its mission, including its ability to serve future generations. 

fund distribution

The annual spending policy for endowments at Children's Medical Center Foundation specifies a 5% distribution of a rolling 12-quarter average of the ending fair market value of the fund. Because the endowment pool performance fluctuates from year to year, the 12-quarter rolling average helps to stabilize the support these funds provide to programs. The 5% distribution rate is reviewed annually to protect the corpus of endowments and ensure the funds continue to provide sustainable, reliable support for our donors' designated purposes. Endowment distribution policies comply with the Texas Uniform Prudent Management of Institutional Funds Act, as amended.