FREQUENTLY ASKED QUESTIONS ABOUT ENDOWMENTS
Can endowment be unrestricted?
Yes. Unrestricted endowments provide the maximum flexibility in meeting the emerging needs of our community. Donors who create unrestricted endowments recognize that the needs and challenges of the future may differ from those of today.

Can an endowed gift be restricted/directed to a specific area?
Yes. We offer donors the opportunity to have their names or the name of a loved one linked to an agency, program or charitable area in which they have a special interest.

How are the endowment funds managed?
The endowment funds held by us are pooled for investment purposes. Our Board of Directors strives to build capital and preserve the purchasing power of the pooled investment portfolio over the long term.

Is a minimum gift required to establish an endowment fund?
No. However, distributions from an endowment fund will not be made until the fund reaches $5,000.

What types of assets can be used to create an endowment fund?
A gift of cash is the easiest and most direct way to establish an endowment fund. Donors often contribute appreciated securities (including mutual fund shares) to establish an endowment fund because of the additional tax benefits that can be derived. As a general rule, no capital gains will be realized on the transfer and an income tax charitable deduction equal to the value of the transferred securities may be taken, provided the security has been held for more than 12 months.

Can I create an endowment fund as part of my estate plan?
Donors can establish endowment funds through a will, trust, insurance policy or retirement plan beneficiary designation or through a planned gift arrangement.