Endowment Funds

In a charitable endowment, the principal can never be spent. The principal is invested to provide both current income and growth on the principal. A portion of the investment return is used to support charities through grants. The appreciation of growth of principal is left with the principal. The idea is that the buying power of the endowment should always remain the same as when the donor established the endowment. Over time, the investment performance should provide grants from the endowment which far exceed the amount of the donor’s original gift.

We specialize in building endowment funds so donors can provide continued support for the community forever.

• Donors wishing to make investments in their communities that will last virtually forever, create endowment funds.
• The original gift (the capital) is not spent; it remains intact.
• These funds are pooled together and permanently invested with the assistance of a volunteer Investment Committee and the Board of Directors. A comprehensive Investment Policy guides the process and the professional money managers we engage work within those guidelines.
• Each year, the Foundation distributes a portion of the fund value to charities and causes that are important to the donor. This comes from the investment income, rather than from the original gift.

• Administration costs are kept at 2%.
• Any additional investment income remains in the fund. This policy is designed to increase the fund balance over time; take into account increases in the cost of living; and build a cushion for the occasional poor investment year. Over time, this ensures uninterrupted, meaningful support to the community.

The permanence of the funds is the true power of endowments. In time, the total accumulated contributions to the community exceed the amount of the original gift.