MICHAELHOUSE IMPACT REPORT 2025 FINAL

CELEBRATING 25 YEARS OF THE CHAIRMAN’S CLUB

2024 was a satisfactory year for the Michaelhouse Chairman’s Club. For the first time in several years the JSE provided a reasonable return with the JSE All Share Index advancing by 9.2 %. In addition, world markets continued to perform strongly driven by the high-powered returns of the MAGA stocks in the USA and the MSCI All Country Index rose by no less than 19.6%. This resulted in a pleasing increase in the assets of the Michaelhouse Bursary Endowment Trust, where Chairman’s Club contributions are invested. 20 new members joined the Club during the 2 years, and a total of R18 298 447 was distributed by the Endowment Trust which provided financial assistance in the form of grants and interest free loans to no less than 106 boys.

2025:

R 9 275 847

in 2000 and was based on the full annual fee for a boy at Michaelhouse at that time. The 2025 fee for a boy at Michaelhouse was R392 000 underlining an ever-widening gap between fees and the funds required to be raised to provide financial assistance. The decision to keep the entrance level donation for the Chairman’s Club at a modest amount (especially after the tax concession) was aimed at encouraging younger generations to join the Club. Throughout the western world there is growing awareness of the imperative to increase endowment funding for independent schools. The reasons for this are self-evident: • To meet unforeseen financial contingencies, as actually occurred in 2020 with the advent of Covid. • To ensure financial independence against political interference, which has happened in the UK with the removal of the VAT exemption • To achieve the goal of educating future leaders of our country, a vital role in which independent schools must play their part. Michaelhouse is swamped by applications from truly outstanding boys who are desperate to come to the School but need some level of financial assistance. We can ill afford to lose this rich pool of talent. for schools and is threatened in SA with the current proposed adjustments to the VAT regime for schools.

2024:

R 9 022 600

TOTAL

R 18 298 447

The Chairman’s Club was founded in 2000, exactly 25 years ago, and it ushered in an entirely new chapter in school fund raising in South Africa. Up until that time schools had generally approached potential donors to fund a specific project which the school needed and once a donor had written out his cheque that was the end of the matter. The Michaelhouse Chairman’s Club brought about the following innovations: • The support of an Endowment Fund whereby capital is preserved as opposed to being spent on projects. • The offer of a choice of a range of options which the donor might support • The creation of a separate reporting entity for each donor whereby the performance of the donor’s “sub fund” is tracked and reported on annually. This aspect of fund raising remains unique to Michaelhouse. • The membership of a Club with a separate identity which provides a special link to the School for life. • The concept of the Chairman’s Club was received enthusiastically by the Michaelhouse community and the Chairman’s Club now has over 380 members worldwide. Membership of the Chairman’s Club is obtained by a donation of a minimum of R100 000 to the Bursary Endowment Trust, which can be paid over five years and is tax deductible in the hands of the donor. The initial joining fee of R50 000 was set

- Article by Jamie Inglis (Baines 1961)

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