Protected: 2024-2025 Annual Report

FISCAL YEAR PERFORMANCE

During the twelve-month period from July 1, 2024, to June 30, 2025, the Hawai‘i Preparatory Academy community again demonstrated its incredible generosity and commitment. Thanks to the generosity of parents, alumni, faculty, and friends, we raised more than $3.8 million in new gifts. Each contribution, at every level, plays a meaningful role in advancing our mission and supporting the next generation of creators and leaders.

Total operating revenue for the year was $25 million, generated through tuition and fees, philanthropic support, auxiliary programs, and income from the endowment. These resources were directed toward the core work of the school, including academic programs, faculty and staff compensation, financial aid, campus care, technology, and fundraising. Operating expenses totaled $24 million, reflecting our continued investment in educational excellence.

As a result, the year closed with a modest surplus of $1 million. This outcome underscores the importance of sustained community engagement and thoughtful stewardship, ensuring Hawai‘i Preparatory Academy’s long-term strength and its ability to provide transformative educational experiences for years to come.

THE HPA ENDOWMENT

The endowment at Hawai‘i Preparatory Academy reflects the school’s commitment to long-term sustainability and support for its mission. It comprises both donor-restricted funds and board-designated funds that provide financial resources for scholarships, faculty benefits, and other institutional priorities.

Total Endowment Assets:

As of June 30, 2025, the Academy’s endowment assets included approximately $21 million in donor-restricted funds, alongside board-designated endowment funds totaling roughly $9.6 million. Together, these funds are vital for ensuring the institution’s long-term financial health. 

The HPA endowment is composed of approximately 90 individual funds, each established to support specific purposes such as scholarships, building maintenance, and program enhancements. This diversity reflects the generosity and vision of HPA’s donors.

Beneficial Trusts:

The Academy also benefits from its interests in several trusts, including a 16% beneficial interest in the Parker Ranch Foundation Trust. As of June 30, 2025, the fair value of these beneficial interests totaled $62.8 million, with $36.7 million from Parker Ranch and $26.1 million from other trusts. 

The Parker Ranch Foundation Trust, based on recommendations from a Distribution Committee, determines the timing and amount of distributions from the Trust. Distributions from the Trust to the Academy amounted to $612,805 for the year ended June 30, 2025. Distributions from all other beneficial trusts totaled $1.1 million, for a total of $1.7 million in investment income during the period, supporting operations, scholarships, and faculty benefits.

Investment Strategy and Performance:

The endowment and trust assets are invested to maintain their purchasing power and generate a stable funding stream for current and future needs. The HPA endowment targets a real return of 6% annually over inflation. During the twelve-month period, net investment returns for donor-restricted funds were approximately $1.7 million, including realized and unrealized gains.

Spending Policy:

The Academy applies a prudent spending policy, targeting an annual distribution of 4.5% based on a 12-quarter trailing average of the endowment’s market value. This ensures a balance between current financial needs and the preservation of the endowment’s value over time.