Which endowment letter

The endowment also grows over time with additional gifts from multiple donors. A well-managed endowment sends a message of planned long-term stability, fiscal responsibility, and financial viability. Annual fund goals tend to rise right along with the cost of providing services and operating the organization, but the ability of the annual fund to meet increasing demand is not limitless.

Program expansion can be funded with distributions from endowment funds used for scholarships, faculty chairs, staff positions, lecture series, research, facility maintenance, equipment and supplies, and for any other purpose designated by the donor or by the board of directors.

Endowment contributions designated for specific purposes can provide a measure of independence from economic, governmental, and political forces. For example, an Indiana retirement community was in danger of losing its chaplain when the board resolved to terminate all programs except those that generated enough income to be self-sustaining. The chaplaincy program survived, however, after a concerned donor made a gift of endowment funds that were sufficient to support the program. The program continues and also enjoys a measure of independence from the need to generate income to support itself.

Endowments offer options to meet new challenges by providing greater financial flexibility and self-sustaining income streams. Endowments can augment uncertain income sources, broaden the overall revenue mix, improve the income statement, and provide leverage for bond-rating capacity and loans for new facilities. A growing endowment builds a pipeline of gifts that will mature in the future, because many endowment gifts are designed to be used at a future date, often upon the death of the donor.

An organization that attracts deferred gifts enhances its future financial security and positions itself to enjoy increasingly larger gifts in the future. Outright gifts as well as other kinds of planned gifts are encouraged by building an endowment.

To the Donor Endowment contributions—both those that create new funds and those that add to existing funds—provide numerous benefits to donors, which the development staff must understand and be able to articulate to prospective contributors and to their financial and legal advisors. Endowment contributions—both those that create new funds and those that add to existing funds—provide numerous benefits to donors, which the development staff must understand and be able to articulate to prospective contributors and to their financial and legal advisors.

By creating or adding to a permanent endowment for a designated purpose, the donor seeks to enable and obligate the organization to carry out his or her expressed wishes, so long as it is practical and possible to do so.

Many donors make larger endowment gifts, often through planned giving vehicles, than they dreamed were possible. Donors can receive great satisfaction from making a significant contribution from assets accumulated over their lifetimes.

An endowment gift gives donors the option to perpetuate their annual gifts. This concept is often appealing to the consistent older donor. Some donors do not want to give away their assets during their lifetimes, yet they want to see the benefits of the gift immediately. They establish endowment gifts through bequests or other gift vehicles that take place after their lifetimes.

Then they make gifts annually that represent the amount that would have been distributed from the endowment if their gift had already been received. In this way, their annual gifts can provide the support currently that their planned gift will provide eventually. These kinds of gifts can provide stable income to the donor during retirement or can help the donor meet family obligations.

Some donors, particularly as they become older, are uneasy with managing their assets and making investment decisions. A split interest gift enables the donor to receive regular income for life without the burden or cost of managing investments.

The acceptance and receipt of donations which are applied to endowment funds within the CFGR shall be governed in accordance with this policy. Endowment expenditures shall be limited and governed in accordance with Section 6 of this policy. Excesses shall be reinvested and applied to the endowment capital. Such documentation shall be held and maintained by CFGR. In the event of a fundraising campaign, a donation form shall be created disclosing relevant information required to issue an official donation receipt.

Confirmation of the designated purpose of the endowment fund for which the donation is to be applied shall be provided to all donors by the CFGR. Donations may be made in cash or other eligible form and official donation receipts will be issued for all eligible donations in accordance with the Income Tax Act Canada. The amount required for an individual endowment will depend on the objectives to be accomplished, and will be negotiated between the donor and the Executive Director of the Foundation.

Any amount may be contributed for any previously-established designated, named endowment subject to the ability of the CFGR Board of Directors to cease accepting contributions for any designated, named endowment at its full discretion.

An executed endowment agreement setting out the terms of the gift will be required to establish any designated, named endowment. Where such named endowments with non-established designations are established by bequest and without a supporting endowment agreement, the CFGR Board of Directors will determine the best use and designation of the endowment funds in accordance with charitable purposes of the CFGR, provided it can do so without a request for direction from the Court.