Types of Funds

Endowment Funds:

The purpose of an endowment fund is to financially sustain the mission of a charitable organization you care about long into the future. A permanent endowment fund is one intended to last forever. You (or anyone else) can continue to add to your endowment fund at any time. When an endowment fund reaches a certain level, it produces grants to benefit Catholic and other organizations. 

Choose the name of the fund (can be named after self, family members, as well as organization or organizations benefiting from the fund), the charitable beneficiary or beneficiaries of the fund.

Once a year, a percentage, based upon the distribution policy, of the endowment is given to the donor’s chosen beneficiary or beneficiaries.

Donor Advised Funds:

A donor advised fund is a flexible option for donors who have a passion for giving to Catholic organizations they care about. The fund is created with a gift to the Catholic Foundation, but you may advise and recommend what grants are to be made for charitable purposes, according to what matters to you most.

You are encouraged to recommend most of the grants to Catholic organizations within the diocese as grant recipients, but you may also include universities and 501(c)3 public charities. All donor advised fund grants must be in accordance with Catholic teaching.

The staff at the Catholic Community Foundation is aware of the needs of the Catholic community and can assist you in discovering opportunities to make an impact with your giving.

Choose the name of the fund, the fund advisor or advisors (who make distribution suggestions), successor advisors to the fund (if desired), and a charitable beneficiary or beneficiaries who would receive money in the fund upon the fund’s closing.

An individual may continue to donate to the donor advised fund after the initial donation to establish the fund. And, anyone can donate to the donor advised fund after it is established.

Scholarship Funds:

Choose the name of the scholarship, the criteria for the scholarship award, and the amount of the scholarship award. Also, scholarship founder has option to determine if a committee will recommend the scholarship recipient, or whether the scholarship recipient will be chosen by an academic institution.

An individual may continue to donate to the scholarship after the initial donation to establish the fund. And, anyone can donate to the scholarship after it is established.

Charitable Gift Annuity:

A charitable gift annuity enables a donor (age 65 or older) to transfer a gift of cash or other appreciated assets to the Catholic Foundation. The donor receives an immediate tax deduction and yearly guaranteed income for life. The donor is able to choose the individual(s) who will receive the lifetime income from the annuity.

They are also able to choose which charitable organization’s endowment will benefit from any unused gift amount at the end of their life. There are many worthy endowments to choose from – including an endowment for every parish in the diocese, as well as others which reflect many areas of Catholic social teaching.

An individual cannot add money to an annuity, but an individual can set up multiple/subsequent annuities.

 

 

Helping Others in the Mission of Christ

How can endowments be funded?
Funding an endowment can be achieved with current outright gifts of cash, securities or real estate from a donor or from capital campaign funds similar to Legacy of Faith.  However, the best way to grow an endowment is by way of a bequest – a gift left to an endowment in a donor's will.  There are many other ways of leaving a "deffered gift" or a "planned gift," such as: a charitable gift annuity, charitable remainder trust, retirement plan asset, life estate, or life insurance policy.  Planned giving is an effective way to fund an endowment. Planned gifts can provide a wider number of benefits such as reduction or elimination of estate and inheritance taxes, income taxes, and capital gains taxes; continued use of property during the donor's lifetime; and/or a lifetime stream of income. 

How much money is necessary to start an endowment?
An initial minimum gift of $5,000 is required for an individual or for a Catholic parish, school, or agency to set up a separate endowment.  Donors have the option of naming the endowment in their family's name or in memory of a loved one. 

What are the steps to establishing an endowment fund with the Catholic Community Foundation?

  • The donor, parish, school or agency would contact the Catholic Community Foundation at mshade@diocesefwsb.org   or call Michael Shade at 260-422-4611, extension 3348, and advise that you would like to establish an endowment.
  • After obtaining the necessary information from the donor, the Foundation will draft an Endowment Fund Donation Offering Agreement and send it for review and completion.
  • The appropriate person (such as the pastor or donor) signs the Agreement and returns it to the Foundation.  A representative of the Catholic Community Foundation will sign the Agreement and return a copy to the pastor or donor.
  • The initial gift ($5,000 or more) to the new endowment can be sent in with the signed Endowment Fund Donation Offering Agreement or can come later.