Middlebury

Midd Equity Partners

Midd Equity Partners are a group of Middlebury College alumni, parents, and friends who have made a major financial commitment to the College by donating non-traditional liquid assets of intrinsic value now or by pledging assets that will be legally transferred to the College when a liquidity event has occurred.

Unlike conventional gifts that can be easily valued at the time of the contribution or pledge, these commitments typically involve illiquid assets, limited partnerships, real estate partnerships, assignable stock options, royalties, or other assets that are difficult and expensive to value and/or contain transfer or legal restrictions. They are, however, expected to appreciate greatly over the course of an investment cycle.

Establishing Value

Given the complexity of establishing a fair market value for certain illiquid assets, the College does not place a present value on the pledges tendered. Rather, it keeps careful records about the asset and related governing documents, if appropriate. The dollar value will be recognized, and a tax-deductible charitable contribution will be made to the College, when the asset has been monetized and the gift made.

Typically, liquidity will be achieved through an IPO, sale of a company/real property, a distribution of cash or marketable securities, or an option exercise. The College will not manage a fund or a pool of assets. When cash or marketable securities are received, the donor will receive credit for the gift to Middlebury College.

An Active Role for Donors

While the College is flexible in the type of pledges and liquid assets it will recognize, the goal is for donors to play an active and ongoing role in the appreciation of the assets pledged. In some cases, donors may maintain legal title, voting control, and physical possession of the asset until the gift is actually made.

The treasurer's office at Middlebury College reviews the terms, conditions and potential future value of pledged assets. Each pledge is then forwarded to the College for formal acceptance.

Benefits of Membership

Partners enjoy an opportunity to network with others whose vision and commitment will have a significant impact on the College. The College generally hosts one gathering each year at which "Partners" may also choose to expand their impact by sharing their business and management experience directly with students, staff, and faculty.