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Private endowments briefing highlights $11M trust, grant funds and questions about transparency
Summary
At the Feb. 11 East Haddam board meeting, Tim Cahill outlined multiple endowed funds that support the district (Rayboard trust, Purple Fund, Spreer and Shepard funds), described annual distribution rules and reported combined Rayboard support of about $387,000; board members pressed for clearer reporting and public transparency.
Tim Cahill, who said he manages several of the town's endowed funds and serves as vice president of the Ray Board, gave the board a detailed briefing on long-standing private endowments that support programs and salaries in the East Haddam School District.
Cahill described three related structures: a large "trust under will" account (which he said is about $11 million), a grant fund (about $3.1 million) and the Rayboard's annual distribution process. "Five percent of the trailing 16 quarters" of the trust, Cahill said, is available for annual expenditures; the grant fund also contributes "four and a half percent" of its value for program grants. He told the board the Rayboard's combined budget for the coming year is "about $387,000," and cited recent grants such as $50,000 to equip a new shop space.
Cahill also outlined the Purple Fund (established to support the high school) and said its current year contribution is roughly $394,000. He recommended reconstituting a focused committee and formalizing reporting lines so that the board and school administration could better track how funds are used and ensure gifts follow donor intent.
Board members raised several concerns during the discussion: which teacher salaries are offset by foundation funds and whether such offsets are shown transparently in public budgets; whether private-board meetings should be posted given heavy engagement with public programs; and who selects Rayboard members. Cahill described the Rayboard as a private foundation that is audited annually, said the superintendent participates in meetings, and acknowledged the board's request for clearer documentation and more public-facing reporting of how distributions flow into town and district budgets.
Cahill also reviewed smaller funds that provide scholarships and program support: the Spreer Fund (scholarship plus funding for STEM) and the Amos Shepard Arts Scholarship (renewable four-year arts awards). He said smaller funds can be administered by the Purple Fund committee to avoid duplicative committees.
No formal board action was taken at the conclusion of the presentation. Board members asked for the trust and fund documents and for future reports to show where distributions appear on town and district financial statements so the public can better see philanthropic offsets to operating costs.
