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A S E T. A l-Rahmah S chool E ducational T rust. MISSION. To establish an Endowment fund committed to supporting the educational needs of Al-Rahmah School & Al-Rahmah Nursery. Definitions. Endowment : A gift that provides an income for an institution / person for a specific objective
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A S E T Al-Rahmah School Educational Trust
MISSION To establish an Endowment fund committed to supporting the educational needs of Al-Rahmah School & Al-Rahmah Nursery
Definitions • Endowment: A gift that provides an income for an institution / person for a specific objective • Waqf (Trust): Entrusted property for the good of mankind • Mutawali (Trustee): Person(s) who manage(s) the trust First Waqf was the land for Masjid Nabawi owned by two orphans
Objectives • Invest Islamically under professional management • Preservation of capital is key to endowment success • Investments will not be touched for first 5 years • Use of a percentage of profit to fund activities • Re-investment of a percentage of profit to strengthen future growth
501(c)(3) Tax Exempt Status • A S E T is a Not-For-Profit tax-exempt entity • Over Five Years of Planning • Effective Jan 10, 2007 • All Donations Tax Deductible • Maybe 1st of its kind in US
A S E T Structure • 12 member Board of Trustees • Comprise respected members of the Community • Diverse backgrounds and Professional Experience • Trust Members will serve as volunteers for a 6 year term with staggered 3 and 4 year terms
Function of Trustees • To act as a fiduciary of funds • To provide governance and leadership • To make decisions on use of funds for school using trust guidelines • To Solicit donors & Raise Funds
Key Roles of Trustees • President / Chairman of Board • VP / Director of Communication • VP/ Director of Finance & Investment • VP/ Director of Fundraising • VP / Secretary & Treasurer • All Trust Members will serve the common goal of the trust
Leading & Recognized Endowments • Harvard Management Company est. in 1974, endowment value $34.9b – year 2007 • Yale Investment Management Committee est. in 1975, endowment value $22.5b – year 2007 • Islamic Society of North America (ISNA) Endowment Fund est. in 1996 raised $1.9m by 2007
Local Private Schools • McDonough School, $50mil raised between 2005 to 2007 • Gilman School expects to spend $3.5 mil from its Endowment 2007-2008
Becoming A Model “I hope that one day the Al-Rahmah School Educational Trust will become like Harvard and Stanford Universities with billions of dollars in their endowments helping many students in need.” - Trust Chairman, Dr. Mohammed Ahmed
Assumptions • Donations over $500,000 • Over a 10 yr period • 30 years of withdrawals • Average ROR 14% • No Withdrawals for first 10 years
The Power of an Endowment $573,194 $9,515,083 $25,973,320 This is a Hypothetical example. A real endowment will have on going donations and withdrawals. This is an illustration and should not be taken as fact of ASET.
Think For A Moment !What if this was done 20 years ago when the School was started?
Leadership “I strongly support this very important step that can over the years greatly strengthen the quality of education in this country under the leadership of Islam. My personal hope is to see the very best in science, literature, and the arts once again flourish under the leadership of our best teachers and scholars in all disciplines relevant to our modern world.” -Trustee Dr. William Greenough
Al-Rahmah School & Nursery Background • Al-Rahmah School started in 1987 • Nursery through Middle School • Over 250 students • Library • Computer Lab • Science Lab • Play ground and Gymnasium
Al-Rahmah School Current Situation • Need to expand to high school • Dependent on ISB for financial stability • Provisional member of the Association of Independent Schools of Maryland (AIMS) • Struggles to attract and retain quality staff
A S E T Supporting Regional Education Maryland State Al-RahmahSchool Baltimore County, MD Many Students and Teachers come from surrounding counties including Baltimore City
Cash Donations Will or Trust What To Give • Appreciated Stocks • Personal Property & Real Estate
Gifts of Cash • How It Works • You write a check, wire funds, or contribute online to ASET. • ASET invests your donation into the fund • Benefits • You use available cash to make your donation. • A gift that ASET can invest immediately. • You receive a full charitable deduction.
Trust / Wills • How it works • Include ASET now in your Will or Revocable trust for a future gift. • Up to 1/3 of your Estate can be designated to ASET • ASET receives the gift, and invests it into the fund.
Trust / Wills • Benefits • Your assets remain in your control during your lifetime. • You can modify your bequest if your circumstances change. • You know that your gift will benefit ASET tomorrow just as you intend it to today
Who Will Manage the Funds? • A reputable Investment Company • Based on Shari’ah Guidelines (no investments in Alcohol, Tobacco, & Gambling Companies etc.) • With Professional Money Management Experience • ASET Trustees will provide oversight and guidance to Investment Company.
How Funds Will Be Spent • Educational needs of Al-Rahmah school and Nursery. • Funds for essential capital equipment and buildings. • Positions for teachers that are guaranteed and not subject to the fluctuations in tuitions and the economy.
How Funds Will Be Spent • Scholarships that can be guaranteed every year to worthy students. • Funds for visiting teachers, speakers and seminars to enrich the curriculum • Specific departments: Islamic Studies, Science Lab, Computer Lab, Library, etc.
Flow of Funds Chart $$$$$$ Your Donations $$$$$$$$$$$$$$$ Donations Invested and Growing In the FUND 5% or < of $$ Earnings Invested into School
What’s In it for Donors? Reward from Allah Sadaqa Jaria (never ending gift) Helping to Build an Institution Tax benefits Personal Gratification
Next Steps • Your support and commitment • Meeting the Minimum Investment Requirement ($100,000) • Investing into a fund for the benefit of the school
Donate & Contact Us • Address: Al Rahmah School Educational Trust 6400 Baltimore National Pike #546 Baltimore, MD 21228 • Website: www.alrahmahtrust.org • Email: info@alrahmahtrust.org • Phone: 410-988-4699 • Make Checks Payable to: ASET (Al Rahmah School Educational Trust)