
Concept of Endowment![]()
When donations are designated for an endowment fund, it means the donation is invested, (not spent), and the earnings are used to support charitable organizations or causes.
• When a donor has more than one charitable interest, they can make one gift to an endowment fund and name several organizations as |
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recipients of a portion of the annual distribution |
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• Endowments are expected to grow over time • Donors like endowment funds to be an arms-length away from the organization they want to benefit • Some organizations do not have the capability of handling complex, charitable gifts (land, commodities, business interests) • Some organizations do not understand the endowment (never spending the principal) concept • Most organizations do not have estate planning expertise • Resources stay in the community |
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