Endowments

Endowed funds established through the Catholic Foundation ensure that the corpus of the donation is preserved, while income earned on the investment is available for use each year for the beneficiary. They are excellent vehicles for donors wishing to provide long-term support for parishes, schools and larger diocesan ministries, especially in the areas of building upkeep and future repairs, ongoing funding for major programs or outreach efforts, tuition assistance, scholarships and much more.

Benefits

  • Provides a steady source of annual income.
  • Earns a market rate of return.
  • Once established, any person can contribute any amount at any time to the corpus.

Details to Consider

  • Minimum to establish a named endowed fund is $25,000 payable over a 5-year period. If not funded in 5 years, the board shall have the authority to release the restriction and place them into the general endowment funds of the Foundation.
  • Distribution of earnings will not be made until the fund is invested for a period of 12 months.
  • Distribution amount is calculated based on the market value of the fund and interest earnings at the end of the preceding fiscal year and is approved by the Board of Trustees.
  • Distributions are made in 2 installments on or about October 31st and April 30th each fiscal year.
  • The beneficiary can elect to not receive a distribution during any cycle, and the distribution will be reinvested to grow the principal of the fund. This amount becomes part of the corpus and will not be available to the beneficiary at a later date.
  • Use must always honor donor intent (the designated use chosen at time of donation).

Endowment Illustration – $25,000 Donation

Year  Annual Earnings (based on 7% Current Annual Av) 4.5% Annual Distribution        (Current Policy) Adjusted Principal
1  $          26,750.00  $            1,125.000  $     25,625.000
2  $          27,418.75  $              1,153.13  $       26,265.63
3  $          28,104.22  $              1,181.95  $       26,922.27
4  $          28,806.82  $              1,211.50  $       27,595.32
5  $          29,526.99  $              1,241.79  $       28,285.21

How We Assist

The Catholic Foundation will:

  • Work with donor to develop name, funding strategy and purpose of the gift.
  • Work with beneficiary to communicate areas of need to potential donors.
  • Draft contracts and manage endowment establishment.
  • Facilitate calculation and distribution of bi-annual distribution to beneficiary.
  • Report to donor on fund performance and use of distributions from the endowment.

To learn more about supporting your parish, Catholic school or favorite organizations through an endowment, please complete our Legacy Form.