Your Top Questions About Catholic Community Foundation Endowment Funds – Answered

Catholic Community Foundation > Your Top Questions About Catholic Community Foundation Endowment Funds – Answered

Every new day is an opportunity to give thanks for the blessings God bestows in our lives. Some of our brothers and sisters in the Catholic faith show their gratitude by supporting causes that are important to them. In this way, they “pay forward” the gifts of God’s grace.

 

The Gift of a Lifetime

And more people are doing so. According to Giving USA’s 2018 report, charitable donations in the U.S. broke the $400 billion mark for the first time ever. Donations were on the rise in all categories, including individuals, corporations, and foundations. At 31 percent, religious causes received the largest share of charitable giving.

For Catholics who want to support their faith and its schools, parishes, and causes in a way that is consistent with their values, the Catholic Community Foundation offers the perfect solution: an endowment fund. Whether you want to leave a legacy or teach your children the importance of giving, a Catholic Community Foundation endowment allows you to do so in a meaningful, long-term way. Here are answers to many of the common questions about these funds.

 

What is an endowment fund?
An endowment fund is a permanent investment fund. A donor funds the endowment, and that money is invested and overseen by professional managers and experienced trustees. While the principal, or amount within the account, remains invested, account proceeds are used to support a cause indicated by the donor.

 

What is the financial commitment for a Catholic Community Foundation endowment fund?

The financial commitment for a Catholic Community Foundation endowment is $25,000. A donor may opt fund the endowment in two ways:

  • Fully fund the endowment with a gift of $25,000
  • Transfer as little as $1,000 with a commitment to contribute a total of $25,000 over a period of time (typically five years)

Best of all, getting started with your endowment fund is a simple, three-step process.

 

Why is establishing an endowment fund with the Foundation better than giving money directly to causes I support?

Endowment funds are a flexible giving tool with advantages for both you and the causes near and dear to your heart:

For you: Prayerfully selecting an organization to support and opening an endowment fund with the Foundation is a powerful way to express your gratitude to God. In addition, a fund can be used to memorialize a loved one, build your legacy, and unite your family in your common values.

Unlike other donation options, you direct funds to the specific Catholic causes you select. When you donate funds to a Catholic Community Foundation endowment, you may be eligible for a charitable giving tax deduction. Endowment funds with the Foundation can also be integrated into your estate plan.

 

For your causes: While a direct gift to an organization is typically earmarked for a purpose and simply spent, an endowment fund can grow over time. The proceeds are used to support your chosen cause in perpetuity.

This long-term approach is why this charitable giving tool has long been favored by colleges and universities, which use endowments to secure their financial futures. Participants in one study of college and university endowments found that participants spent more than $21.6 billion on campus operations in 2017. Average fiscal year returns for these funds were 8.2 and 12.2 percent in 2017 and 2018, respectively.

 

Why choose an endowment fund with the Foundation?

With more than 500 endowment funds and more than $86 million in assets, the Foundation is a trustworthy, experienced steward of your money. We invest in alignment with Catholic teachings and values, so you can be sure your gift is being managed in accordance with the principles of our faith. The Foundation’s board of trustees and committee members also provide deep financial expertise and oversight of our funds.

We partner with Commonfund, a global investment manager with more than $24 billion in assets under management. With a Catholic Community Foundation fund, you choose the cause you wish to support and can rest assured that your gift will support only the causes you choose for many years to come.

 

How will I know about the impact my donation has?You’ll receive quarterly statements documenting the fund’s performance. In April, your beneficiary will receive a distribution notice, with distribution checks following in August.

 

What is the cost of opening a fund?

There is no cost to open a Catholic Community Foundation endowment fund. Our experienced team will walk you through the simple process. Once the fund is established, a 1% annual fee would be applied to the balance to cover the Foundation’s fee for endowment management and administration.  So, for every $1,000 , the Foundation would charge a $10 fee which is deducted from the proceeds.

 

How do I open an endowment fund with the Foundation?

Start the simple, three-step process and request additional information.