District Endowment

The Pioneer District Board of Directors are announcing the establishment of a permanent endowment to secure the district’s financial future and support future generations of barbershop singers.

Currently, the district has over $100,000 in liquid assets, but inflation has eroded purchasing power by more than 36% over the past decade. To counter this, the district will create an endowment managed by Harmony Foundation International (HFI).

Key points about the endowment:

• Initial Goal: Raise $15,000 from members, which will be matched by $15,000 from district reserves, creating an initial $30,000 endowment.
• Growth Potential: Based on past performance, the endowment could triple in value within a decade if contributions continue and earnings are reinvested.
• Draws: The district may withdraw up to 5% annually, though withdrawals are optional.
• Management: HFI oversees the investment, charging a 5% fee on annual contributions and 5% of market gains.
• Permanence: The principal remains intact; the endowment is meant to grow long-term.

Every member is encouraged to contribute — even small gifts matter — to "Pay Barbershop Forward" so future singers can enjoy the same experiences.

Click here to donate to the Pioneer District Endowment Fund

FAQ

Q: Will the district seek $15,000 in donations every year?
A: No. There will be opportunities to contribute, but there is no set annual fundraising goal for the endowment.

Q: Does HFI take 5% of the entire endowment each year?
A: No. HFI only takes 5% of new contributions and 5% of annual market gains, which is standard for endowment management.

Q: Can the district withdraw more than 5% in hard times?
A: No. The maximum withdrawal is 5% annually, but only $15,000 (about 15% of district cash reserves) is being committed initially.

Q: Is the annual withdrawal required?
A: No. Withdrawals are optional. If funds aren’t needed, the money can remain invested to grow.

Q: What happens to the endowment if the district ceases to exist?
A: The agreement will specify where funds go. Possible beneficiaries include HFI’s general endowment, Power of Harmony, AIC, or BHS.

Q: What is HFI’s investment track record?
A: HFI’s portfolio (80% growth stocks, 20% bonds) has returned:

• 1-year: 11.8%
• 3-year: 9.2%
• 5-year: 7.8%
• 10-year: 7.7%

Q: Do other districts have endowments?
A: Yes. Far Western and Evergreen Districts have endowments, and the Southeastern District is currently forming one.