An Organization Endowment Fund allows a donor to provide a perpetual source of income to support the efforts of a 501 (c)(3) charitable organization of their choice.
In addition, a not-for-profit organization can place its endowment funds into an Organization Endowment Fund. This allows the organization to eliminate the costs and administrative burdens in managing the endowment funds or a supporting foundation.
All donations to the fund will be restricted for the designated organization’s use only.
Investment earnings from the fund can be regularly distributed to the organization or reinvested into the fund to build assets for future use.
An Organization Endowment Fund can be established with a gift of as little as $10,000. A tax benefit is received in the year the fund is established.
Advantages of establishing an Organization Endowment Fund
• As a fund within the Community Foundation (a public charity), it is exempt from income taxes under IRC section 501(c)(3).
• The Community Foundation handles all administrative work of the Organization Endowment Fund, including preparing/filing required reports to the IRS (ex. Form 990), monitoring investment performance and arranging an annual independent audit of the fund.
• Donors can establish a board of trustees or advisors to advise the Foundation on how to invest the funds as well as how and when to distribute its earnings.
• Donors can benefit by investing the funds in the Foundation’s well-diversified portfolio that has consistently outperformed its benchmarks.
• The fund may also be featured on the Foundation’s “Donate” webpage which offers others the opportunity to make gifts to organization endowment fund.
• The Foundation sends all IRS required tax acknowledgement letters to those who contribute to your fund.
How an Organization Endowment Fund Works
Click on the link for a PDF of the brochure on Organization Endowment Funds