WHAT IS ENDOWMENT?

Endowment is a combination of charitable contributions or funds permanently invested to produce a continuing stream of income. These funds are jointly invested to produce a maximum rate of return, consistent with a prudent investment strategy. The income is used to make grants for community improvement activities in the local area, and to cover the administrative expenses of the community foundation.

A community foundation addresses both current and long-term needs. If a community's needs are immediate and critical - for example, providing accessible and potable water - we will seek funds and collaborate with other groups to address these urgent problems right away.

However, we are also constantly looking to the future, anticipating new community needs and developing strategies to address those emerging problems before they become overwhelming and urgent. In this regard, endowment funds enable us to serve as a "savings account" for the community.

Endowment also strengthens our long-term stability and sustainability. Endowment ensures that we have ample resources to contribute to current and long-term projects addressing community concerns.

Endowment enables us to plan with greater certainty, perhaps making multiyear grants for long-term projects. Endowment provides the opportunity for a donor's gift to last forever, and for the donor's concern for community to be recognized in perpetuity.

See also "Building Community Endowment"