To provide a solid foundation to the 250 underprivileged poor girls from the scheduled caste at this Khategaon Campus with balanced educational, social, spiritual and physical fitness to maximize their personal potential in their own lives and advance their contribution to their families and community. Regularly communicate with all parties concerned, the progress of all these students and the progress of building a special Endowment Fund as a long term financial resource for this mission.
KHATEGAON GIRLS SCHOOL & HOSTEL, MADHYA PRADESH:
Initiated in 2011 by Dr. Terry Papneja, Founding Member of AIM for SEVA Chapter Canada, and co-ordinated by Madhya Pradesh supervisors Swami Aishwaryananda Saraswati and Acharya Navneetnji, the campus is situated on a fully fenced and gated 4 acre property with 2 school buildings, a hostel and a guest house, with land for the girls to grow vegetables and fruits, and with 5 cows on the property to provide nourishing milk. This 4 acre farm land was donated by a local farmer, Shri Radheyshyam Bohre, and the school buildings, hostel and other facilities donated by the families of Shailesh & Mina Raja, and Mike & Ila Lakhani from Canada. The school and hostel are at capacity with 250 girls from grades 1 to 12, with 85 of these girls staying in the on-campus hostel. Currently, 9 teachers with administrators and wardens operate this facility. Unlike other AIM for SEVA hostels, which are mainly for boys and located near an existing school, this facility operates both a school and a hostel on the campus site, and has its own challenges catering to scheduled caste poor girls in a remote part of Madhya Pradesh.
WHAT IS AN ENDOWMENT FUND?
We are often asked, “What is an Endowment Fund?” Endowment Funds have been around for a very long time going back to the Roman days. They are funded by donations which are tax deductible for the donors. These funds are permanently invested by non-profit organizations, where the principal amount in the funds remains invested for generations and income earned from this principal amount is used for the specific purpose on an ongoing basis, for operations and other needs the fund has been created for. Educational institutes like Universities, Hospitals and Charities are well known for creating endowment funds. It enables the institute involved to have a reliable source for funds needed on an on-going basis. Harvard University maintains one of the largest educational endowment funds with $ 32 Billion dollars directing the earnings from it to 108 different specifically targeted needs in the University on an annual basis. Charitable Family foundations are set up to direct earnings from the funds to causes the donor families believe in. Reputable and long established Community Foundations are often appointed as trustees to manage and report on these endowments as per the wishes of the donors following government regulations. Community Foundations have been around in Canada since 1921.
Established in 1981, Toronto Foundation is part of 191 Community Foundations across Canada which together manage over $6 Billion dollars. These foundations help administer Registered Canadian Charities, Family Foundations and Institutions. Toronto Foundation currently administers over $ 400 Million Dollars. Khategaon Girls School Endowment Fund – AIM for SEVA, was set up on September 2nd 2015 with Rahul Bhardwaj, President and CEO and Anne Brayley of the Toronto Foundation witnessed by Dr. Terry Papneja, Arun Luthra, Mike Lakhani and Mitesh Kantaria with an initial amount of $ 275,000.
CURRENT ENDOWMENT FUND & TARGET:
With the land and bulk of the required physical structures in place, AIM for SEVA Canada has been providing the on-going operational costs which, over time, are intended to be replaced by building the Khategaon Girls School Endowment Fund specifically targeted for this purpose. This endowment fund has $ 340,000. An independent institution, Toronto Foundation will manage the above Khategaon Girls School Endowment Fund and advance funds to the School administrators, at the rate of 3.5% annually from the capital. Toronto Foundation, as a trustee, will distribute these funds only after receipt of regular audited accounting reports. At this rate, the capital donation can be preserved for generations to come, while providing the ongoing annual operational funds to the Khategaon campus. With the operational costs for 250 girls, the eventual target size of this special fund needs to grow to well in excess of $ 2 Million, intended to be raised from other donors as they become familiar with this project, with total transparency and ongoing communication to see the progress on helping the girls at this facility.
CONSIDER SETTING UP YOUR OWN DONOR ADVISED FAMILY FOUNDATION:
With the generous incentives in place to help Charities of your choice, encouraged by the Canadian Tax System, your own donor advised Family Foundation can be set up fairly easily. While most donors do not give to charities for tax reasons only, the tax benefit does make a significant difference. Times when you could consider donating to the charity of your choice instead of sending it on to Ottawa:
- When your personal or tax is high enough at over 30%.
- When you are reluctant to sell a stock holding, as it will create a sizeable taxable capital gain – this stock could be donated to a charity “in kind” avoiding the capital gain payable as you get a “ market value” deduction for this ‘in kind ‘ transfer as a charitable donation.
- Recent legislation allows proceeds from the sale of your private corporation to a charity, reducing the tax bill on the sale with the charity of your choice getting the benefit.
- Designating a charity in your Will when working on your estate plan could significantly reduce the estate tax your beneficiaries have to pay.
- Buying life insurance where the premiums are tax deductible when a charity or your own donor advised family foundation is an irrevocable beneficiary.
KHATEGAON GIRLS SCHOOL WEBSITE:
Mitesh Kantaria is in the process of finalizing a Khategaon Girls School Website for communication on the progress of each student, teachers at the school, ongoing activities, total financial transparency and accountability demonstrating 100% of all donations reaching the cause and progress on building the school’s Endowment Fund. Your own donor advised family foundation could help this endowment fund. Visit www.balikaschool.org for further information on this cause