Endowment Funds

Endowment Funds

Specific. Lasting. Impactful.

An Endowment Fund provides a source of annual income to a Catholic organization of your choice. You can establish a Fund with a minimum contribution of $20,000 which can be made with a donation of cash, IRA rollover, appreciated assets, etc. This donated amount forms the principal (corpus) which is permanently endowed to ensure long-term financial health and support our Catholic Community for years to come. Earnings from these funds are distributed annually to your chosen cause. A distinct benefit of establishing a fund with The Catholic Foundation is that your fund grows in socially responsible investments which are compliant with our Catholic values. Once established, anyone can make additional contributions to your fund in any dollar amount.

Key Benefits

  • Specificity: Endowment Funds allow you to designate to any Catholic organization, or leave unrestricted to serve the greatest need.
  • Simplicity: The Catholic Foundation manages the fund and distributes income to the selected organization.
  • Advantageous: Avoid capital gains taxes on long-term, highly appreciated assets.
  • Legacy: Your Fund will continue to benefit the selected organization in perpetuity. Donors also have the ability to fund or supplement with an estate gift or designation in a will.
  • Catholicity: Invested in accordance with the United States Conference of Catholic Bishops guidelines for Socially Responsible Investments.

If you are interested in learning more about starting your own Endowment Fund, please contact Madelyn Weed at mweed@cfocf.org  or (407) 246-7188.

Announcing Three New Endowment Funding Options!

Virtual Endowment
Virtual endowments allow the donor to establish an endowment while living which will be fully funded through a bequest. A donor makes an initial gift and provides notification of a future bequest to The Catholic Foundation to establish the Fund. They also agree to donate an annual gift that flows through The Catholic Foundation that would equate to the expected annual distribution (or grant) a fully funded endowment would have provided to the parish, school or ministry. For example, a donor might provide a $5,000 gift of stock and a bequest for $15,000 which would create the minimum fund at the time of their passing. The annual distribution from that Fund would be about $800 (based on a 4% average distribution) — so the donor would also be agreeing to provide $800 annually for life through the Foundation for the beneficiary (that’s why the Fund is considered established – the donor would provide the minimum annual distribution even before the fund is established).

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Equity Building Endowment
This option allows a donor to establish an endowment within a certain number of years – not to exceed 10 years. A donor makes an initial gift with an agreement for the balance to be paid annually over a certain number of years up to 10 and the distribution amount for the beneficiary until the endowment is fully funded. For example, for a 5-year equity building endowment, a donor provides a $4,000 initial gift and agrees to make 4 more annual payments of $4,000 to create the $20,000 minimum endowment. The annual distribution, again $800 – would also be in the agreement for the donor to provide to the beneficiary through the Foundation for the 5 years (each year the donor provides $4,800 to build equity in the endowment and provide the beneficiary annual revenue). After the 5 years, the endowment is fully funded and the endowment will provide future income for the beneficiary.

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Pooled Endowment
This option allows for a group of people to join together to build an Endowment Fund. This is a good opportunity for an Endowment that will be named in memory of a loved one or in honor of a graduating class or a retiring staff member. The minimum funding level is $20,000, but the initial donations can come from two, ten or even a hundred different donors. Usually, the beneficiary or a family member is designated the main point of contact for a Pooled Endowment.

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Give Us a Call
If you are interested in learning more about how you can create an Endowment Fund, start by contacting us to discuss your philanthropic or legacy planning goals. We will work directly with you and your financial advisor(s) to customize a plan that will help you make a significant impact on the ministry close to your heart (and provide significant tax advantages.) Once you complete and sign your Fund Agreement, you will have access to a 24/7 Fundholder Portal through which you can keep track of your Endowment Fund and distributions made from it.  Contact Madelyn Weed, Vice President of Donor Services at (407) 246-7188 or mweed@cfocf.org for more information on starting your lasting legacy today.

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