WHAT IS AN ENDOWMENT?

An endowment fund is a permanent, self-sustaining source of funding. Endowment assets are invested. Each year, a percentage of the earnings of the fund is paid out to support the fund's purpose, and any earnings in excess of this distribution are used to build the fund's market value. In this way, an endowment fund can grow and provide support for its designated purpose in perpetuity. When you establish an endowment fund, you create a permanent legacy of support for the organization(s) or causes that you care deeply about.

WHY SHOULD I CONSIDER STARTING AN ENDOWMENT?

Endowment funds are a powerful giving vehicle that offer many benefits to donors and the nonprofit organizations that they wish to support.

Benefit to the donor:

• Allows the donor to perpetuate their values and charitable priorities by investing in the future

• Creates an ongoing source of income for the organization(s) or cause(s) that donors care deeply about

• Creates a sense of immortality through legacy giving and establishing a named fund

• Can continue gifts made during a donor's lifetime - forever

• Allows donors to support the local community while simultaneously supporting their personal charitable interests

 Benefit to the organization or charitable cause:

• Creates an ongoing and permanent source of income

• Enhances stability and prestige by sending a message of planned long-term stability, fiscal responsibility, and financial viability

• Can provide financial independence from certain economic, governmental, and political forces