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Iowa has about half as many schools as NC so should they have the half the assets?
NCHSAA started the endowment fund in 1993 (or 1994) and other states gradually followed. In my travels to other states for high school athletic events I have found that the NCHSAA has been looked at as a model program by other state governing bodies.
Here is a link to the NCHSAA's assets broken down into categories. Of note from the linked article: "As of June 2020, the total value of the general endowment fund was $23,048,553, which is included in the NCHSAA's net worth. Of that, $14,967,246 were perpetuity restricted funds, which means it can never be spent. Perpetuity restricted funds remain in place provide interest revenue at all times, allowing the board of directors to use the funds for programs and other priorities" (Stevens, 2021). The article does a great job itemizing the balance sheet which I will not attempt to do here.
The data above indicates only $8,081,307 (or 0.64937) can be spent. Another way to read this would be to say the NCHSAA has assets at $41 million but an operating budget of $8 million, or .195 of their total assets (even though the operating budget is more than $8 million, I only used this figure as a representative example to demonstrate the endowment fund is not equal to a spending fund. People need to understand the ways endowments work!). Another example could be that someone has a home valued at $100,000 but in a given year they can only spend $20,000. This makes a tremendous difference when attempting to understanding the $41 million in assets. Lastly, if the NCHSAA began the endowment in 1993 as the first state association to do so, then it makes rational sense that they would be ahead of other states in terms of endowment fund total much like the individual that begins investing at 25 will have more than the person that begins at 40 when both individuals reach 50 years of age.
In no way is this an attempt to defend the NCHSAA. As I have stated previously, they have issues they need to address and correct, but to dissolve them as a result of personal conflict because a senator did not get his way is childish at best.
Breaking down the NCHSAA's $40 million in assets
The total of $40 million is thrown around often. It is true, the NCHSAA has a total net worth of $40,371,590, as of the end of the fiscal year ending June 30, 2020, according to financial documentation the NCHSAA shared with member schools on Friday.www.highschoolot.com
IF the other state started an endowment fund or something similar years later then they most likely would not have more.Using that same logic, states with more schools than NC should have more assets. But clearly that’s not the case as the numbers have shown.
** I just re-read part of that. You’re saying we were the first to start an endowment fund? If so, that would certainly go a long way in explaining the wide $ gap between us and the rest of the country. Did Commissioner Tucker make light of this in the general assembly hearings?
Whoever wrote that article is either ignorant or wants to distort the facts to achieve their own goals.Haywood County lets there feelings be known about the High School Mafia in charge now. https://www.themountaineer.com/news...cle_0e34aae8-f006-11eb-807d-4fed88cb18e3.html
No decision has been made. It is only in committees.Isnt the state government taking over after this year?
They may regret going public if the NCHSAA stays as it is. You want hear many schools or coaches speak against it for that reason.Haywood County did not get their way. For the superintendent to state there is no process (in classifications) is way off. The one thing I will say about the NCHSAA is they do everything by a set of regulations and part of the complaint by many is they adhere strictly to them and do not bend even when it seems to be sensible to some. Seems the complaint here is they did not bend to what Haywood County and Tuscola wanted.