Endowmentr

Three of our long time faithful donors have helped us start our own fund at The Inland Northwest Community Foundation (INWCF).  An endowment fund differs from an annual giving fund, in that the annual giving fund is intended to be spent on current operational expense, while gifts to an endowment fund are intended to be invested and only a portion of the earnings are spent annually. In the case of INWCF, only 4% of the value of the fund is available to spend annually. This allows, over time, for the fund to grow from earnings as well as new gifts, and this, in turn, allows the annual draw of the funds to keep up with inflation.

Anyone making a gift to the endowment before June 30, 2012 will be considered a Charter Donor. That being said, meeting current needs of our clients is always our top priority, but if you can afford a little extra, then please, when you write your check, put “endowment” on the memo line.

Why an endowment? Three reasons emerge: one is to help us be prepared to serve in the future, we may not draw our 4% for a while, with the plan to build the fund to a certain level so that the annual income will be a significant level of funding annually. The second reason is that non-profits open their doors each year by starting at zero and immediately have to start building income to meet the day to day operational needs of the organization. With an endowment, for every $100,000 invested we know that we will have $4,000 in income. Side thought: wouldn’t it be neat if someday our endowment could cover all of the admin and fundraising costs, therefore 100% of all donations could go to program services? The third reason for an endowment and having it at INWCF is that we can now accept many more types of gifts such as, but not limited to: real property (land, homes, duplexes, apartments, farms or commercial properties, that are debt free), closely held private stock, automobiles, cars, IRAs and qualified retirement plans, and life insurance. Should you need current income, INWCF can establish a Charitable remainder trust that gives you lifetime income, an immediate tax deduction, and eventually a gift to the endowment. Isn’t that a win-win for the donor and SVP?!

INWCF has many examples of modest gifts that have had a big impact and grown in size too. INWCF has named their Legacy Society (those making gifts of $10,000 or more) and the Anton Albert Society. Mr. Albert made a donation of $14,000 in 1926. In the last 85 years, Mr. Albert’s gift as given $25,000 towards the needs of homebound seniors in Spokane County; his gift has grown in value to $45,000.

We have a Planning Strategies brochure that outlines how gifts can be made to the Endowment Fund, and we would love to mail one to you. Just send Don an email at devdir@svpart.org and ask for the Planning Strategies brochure. We hope that you find it interesting and should you have questions, a mail back card will be included.