Imagine making a charitable donation today that will still be making a difference for your favorite causes 10, 20 or even 50 years from now. How many lives would be touched by that single gift?
When you partner with the Community Foundation, that kind of long-term impact is possible through an endowed fund. Technically speaking, an endowment is a fund that is invested on the markets for future growth. The principal of the fund is never spent, but the investment returns can be granted out year after year to support charitable causes. Over the long term, you can grant many times more than the value your original gift because the endowment continues to generate income as long as it’s invested.
We use a calculation based on the average value of the fund from quarter to quarter to determine how much can be granted each year; that way, even when the financial markets are down, you can continue to support your favorite charities.
Here’s how it works:
You decide which causes you want to support. Your endowed fund is your tool to make an impact on the charitable needs that matter most to you. You might choose to focus on a particular issue if:
- You want to honor or memorialized a loved one by supporting a cause close to his/her heart.
- Your life has been touched by an experience in a particular issue area; for example, maybe you valued the support of an Alzheimer’s respite care program during a loved one’s illness, or perhaps your life was influenced by early exposure to an arts program.
- You’ve been a committed volunteer and/or donor to a specific cause and want to provide a source of funding that will continue on even after your death.
Or, you might consider focusing on a particular place, using your fund to support a variety of programs working to improve that community. For example:
- Do you want to give back to a community that has supported your family or business through the years?
- Are you active with a wide range of causes in your area? Would you find it difficult to choose just one to support?
- Are you a committed community leader? Do you want to provide funding so that the work you began can continue for generations to come?
You decide how hands-on you want to be. If you already know which organizations you want to support or you want to involve your children and grandchildren in your giving process, you can create a donor-directed fund. That means we’ll make grants from your fund based on the recommendations you give us each year.
But if you want help identifying the very best charities working to address your favorite cause or you want to ensure that your funds are used to support a wide variety of causes from year to year, you can also tap into the expertise of our professional staff and volunteer advisory committees. Through a foundation-directed fund, we’ll work to identify the best use of your funds from year to year, following any guidelines or parameters you give us.
We’ve got the flexibility to customize a giving solution that fits your interests and preferred level of involvement.
We manage the fund and handle the administrative details. Our expert finance committee and investment advisors handle the day-to-day management of your fund to keep it growing for the long term. We also take care of the accounting, legal compliance, auditing and other administrative details. All you’ve got to do is enjoy the satisfaction of building your charitable legacy.
Get started today! The process of creating your fund is simple and easy. We’ll gather some basic information about you and the causes you want to support and talk you through the process of choosing the type of endowed fund that best fits your needs. We can have your fund up and running in as little as a day or two.
If you’re ready to get started, contact your local affiliate’s executive director or Ashley Coldiron at 501-372-1116.