An endowment is a long-term fund invested for the future needs of an organization. The fund is intended to be held in perpetuity and a portion can be used each year to fulfill an organization’s charitable cause. An endowment is governed according to a specific purpose, spending policy and distribution schedule.
The most important benefits of an endowment include:
Endowments are initiated in many ways. An organization may have reserves dedicated for the future. A donor campaign may inspire endowment funds. Or an endowment may be created in honor of someone or to leave a legacy. But there are other considerations to help ensure your organization is ready to create and grow an endowment.Are you endowment ready?
Many nonprofits choose a community foundation to steward their endowment rather than investment and banking organizations.
That’s because foundations are tapped into the unique needs of the nonprofit industry and share a commitment to the welfare of the community. This can assure you that a foundation’s goal is to serve you and your cause.
Nonprofit endowment funds at the Foundation are commingled to create a very large investment pool. This gives the fund extensive buying power, access to institutional investments and lower fees that benefit our Nonprofit Endowment Partners.
Annual fees are based on a fund’s balance and computed monthly: