An endowment is a perpetual fund that's designed to provide stable, ongoing gifts to the causes of your choice. It creates a lasting legacy that reflects your faith and values.
You may establish one on its own — or — other funds, such as donor advised funds, charitable trusts, or gift annuities can be converted to a permanent endowment.
Benefits Of An Endowed Fund
- You can provide annual grants to the charities you have identified for years to come.
- Many assets can fund the endowment, including cash, appreciated securities, required minimum distributions from retirement accounts, real estate, and personal property. Except for QCDs—which already yield a tax benefit—each gift is tax deductible.
- You can build your endowment over time.
- Once established, your children, grandchildren, or other community members can add to the endowment to honor your legacy.
- If you are concerned about outliving savings, you can also write an endowment into your estate plan, and it will be funded upon your passing.
- You can be assured that your gift will always be used as you intended.
How An Endowed Fund Works
- You establish the fund using a variety of assets— most of which qualify for a tax deduction.
- You can list one or more charities as the beneficiary of your endowment, and an annual grant will be given to them.
- CCF invests your fund to earn revenue so that your fund can grow.
- The investment strategy that CCF uses is faith aligned and follows the Catholic bishops' guidelines for socially responsible investing, and is diversified to yield steady, balanced growth over a long period of time.
- Every year, CCF determines the "spend" or distribution rates for endowments. This is the amount of funding that is granted to your charities through your endowment. The current spending rate is set at 4% of the average fund balance over the previous 20 quarters. Structuring the grant distribution in this way allows for consistent, predictable income to your charities even when there is market volatility.
- CCF manages the administration and grantmaking of your fund.
- You can change your beneficiaries at any time during your lifetime.
If you have questions about Endowed Funds, please contact us. We'd be happy to assist you with any questions.