An endowment is a large sum of money held in diversified interest bearing accounts by a non-profit. Dividends and other gains are partially spent on operating costs, or in the case of a community foundation, to improve the local community and the rest is usually reinvested to ensure growth and financial stability of the endowment.
There are many advantages to endowments; the biggest being financial stability. Other advantages include increased income diversity, ease of setup, and benefits to the local community. An endowment is an excellent way to increase financial stability for a client; and donors will feel a sense of accomplishment as their contributions make meaningful, positive, and long-term differences in the local community.
What is a Community Foundation?
We’re a community foundation, a tax-exempt public charity that enables people like you to establish charitable funds that have a direct impact on our region. Your fund will be commingled with our other funds and managed professionally. Its assets will grow over time. You and your family and colleagues are encouraged to continue giving to the fund to help it grow even more. Grants can be awarded from your fund to support your local nonprofit organizations, in accordance with your interests.
Like all community foundations, we are overseen by a volunteer board of leading citizens and run by professionals with expertise in knowing our community’s needs. We go beyond simply making grants that advance charitable activities; we also identify current and emerging issues, stimulate resources to address those needs and help our region prepare for the future.
It’s for these reasons that community foundations represent one of the fastest growing areas of philanthropy and are the top vehicle for charitable giving in the United States. When charitable-minded people like you seek valuable and suitable ways to give, we can help you make a real difference in our region.