NAPPSA Foundation

The NAPPSA Endowment Fund is designed to create a steady, dependable source of funding for the programs and operations of NAPPSA, in a manner consistent with the stated mission of NAPPSA. The proceeds from the Endowment Fund may also be used for purposes specified by the donor(s) to the endowment. To maximize not only the short-term but also the long-term contributions to NAPPSA budgets, the NAPPSA Endowment Fund management is structured to optimize the three core pillars of the Endowment Matrix, namely:

1. the fundraising strategy
2. the spending strategy, and
3. the investment strategy.

All of these are structured to fit the goals of the NAPPSA Endowment Fund and the needs of the NAPPSA organization and must be enforced via the governance and management structure of the endowment fund, as depicted in Figure 1, and are continually monitored by the NAPPSA Endowment Oversight Board.

The success of the NAPPSA Endowment Fund depends on our ability to raise funds to ensure its growth and sustainability. As conceived, the primary sources of inflows to the NAPPSA Endowment Fund include:

1. NAPPSA B-2-B Rebate Earnings
2. Annual NAPPSA 5k Run/Walk
3. Donations from NAPPSA members
4. Donations from NAPPSA Endowment Partners and Sponsors

The NAPPSA Endowment Oversight Board and the NAPPSA leadership continue to look for additional creative ways to source funds and sustain inflows to the NAPPSA Endowment Fund. The Endowment Board will also play a very vital role in driving the fundraising efforts to generate a steady inflow stream from the identified sources of inflows listed above.

The overall investment objective of the NAPPSA Endowment Fund is to maximize the return on invested assets while minimizing risk and expenses. This is done through prudent investing and planning, as well as through the maintenance of a diversified portfolio. This ensures that we preserve the long-term, real purchasing power of assets while providing a relatively predictable and growing stream of annual distributions in support of the institution. The Endowment Board recognizes that the strategic allocation of Portfolio assets across broadly defined financial asset and sub-asset categories with varying degrees of risk, return, and return correlation will be the most significant determinant of long-term investment returns and Portfolio asset value stability. Two key elements of our Asset Investment allocation policy are:

1. NAPPSA Endowment Fund assets are managed as a balanced portfolio composed of two major components: an equity portion and a fixed income portion. The expected role of equity investments is to maximize the long-term real growth of Portfolio assets, while the role of fixed income investments is to generate current income, provide for more stable periodic returns, and provide some protection against a prolonged decline in the market value of equity investments.
2. Cash investments will, under normal circumstances, only be considered as temporary Portfolio holdings and will be used for NAPPSA Endowment Fund liquidity needs or to facilitate a planned program of dollar-cost averaging into investments in equity and/or fixed income asset classes.

Outlined below are the long-term strategic asset allocation guidelines determined by the Endowment Oversight Board to be the most appropriate, given NAPPSA Endowment Fund’s long-term objectives and short-term constraints. Portfolio assets will, under normal circumstances, be allocated across broad asset and sub-asset classes in accordance with the following guidelines:

A clearly defined sustainable spending strategy is as important as thinking about the right investment strategy. How much an endowment distributes to the organization’s operating budget must be determined via a clearly stipulated spending rule. Details of our Spending Strategy are outlined in the Investment Policy Statement. Two key provisions of the Fund’s Spending Policy are:

1. For the purpose of making distributions, the NAPPSA Endowment Fund uses a total-return-based spending policy, funding distributions from net investment income and net realized capital gains or dividends.
2. The distribution of NAPPSA Endowment Fund assets will be permitted to the extent that such distributions do not exceed a level that would erode NAPPSA Fund’s real assets over time. The Endowment Board will seek to reduce the variability of annual Fund distributions by factoring past spending and Portfolio asset values into its current spending decisions. The Endowment Board will review its spending assumptions annually for the purpose of deciding whether any changes therein necessitate amending NAPPSA Endowment Fund’s spending policy, its target assets allocation, or both.

Our spending strategy also honors the wishes of donors who want to be sure their gift supports the exact purpose they gave it for. The NAPPSA Endowment Fund’s Annual Report clearly shows every dedicated endowment gift being used for the purpose the donor specified.

The key to success across the three pillars of the NAPPSA Endowment Fund — fundraising, investment, and spending strategy — is the governance structure behind the endowment. The Endowment Oversight Board is the strategic body for oversight and accountability of the Fund. Board members work closely with investment managers to set investment objectives and are responsible for the spending rules that keep the Fund sustainable. The Board also drives fundraising campaigns and generates new ideas for fundraising channels.

Since its founding, the NAPPSA Scholarship award program remains central to the educational aspirations of its underserved minority student members in professional doctor of pharmacy and pharmaceutical sciences programs. The NAPPSA scholarship award program is designed to support the pharmacy and pharmaceutical science education in North America and nurture beneficiaries to become globally able pharmaceutical practitioners and scientists. NAPPSA values her young professionals and places high premium in mentoring and the enhancing the educational and professional growth of young pharmacists and pharmaceutical scientists. The NAPPSA Young professionals Scholarship and Grant Award Program was established to further this objective.

The scholarships/grants are provided to young minority students to help with the regular education expenses such as books and supplies, travel grants to conferences for scholarly podium and poster presentations. Past scholarship recipients are outstanding and deserving students who have gone on to pursue careers in the pharmaceutical industry, regulatory agencies, academia recipients have gone on to serve the medical community in all areas of clinical practice including Infectious disease, critical care, etc. All awardees are fulltime PharmD or graduate students enrolled in programs relevant to pharmaceutical sciences in a fully accredited University in the USA.

One-hundred percent of contributions to scholarship funds goes directly to students.

Health care professionals are generally healthier, more affluent, and more actively engaged in their communities than their counterparts

• Have higher employment rates
• Contribute to overall wellbeing of the community
• Pay more taxes
• Vote and volunteer more
• Opportunity to recruit and retain scholarship recipients as future employees
• Require less public assistance

The growing cost of attending higher institution presents a daunting challenge for many students and their families. By one measure, student loan debt among recent pharmacy school graduates averages almost $200,000. According to the Federal Reserve Bank of St. Louis, Americans collectively owe in excess of $1.6 trillion in student loan debt.