Considering Whether an Endowment Fund Is Right for You
|(L-R) Dan Rothblatt, Senior Vice President, Philanthropic Services; Baruch S. Littman, Vice President, Development and Elliot B. Kristal, Vice President, Charitable Gift Planning.|
For philanthropists contemplating how to best establish a permanent legacy that will have lasting impact beyond their lifetimes, endowments represent a powerful option. Here's a snapshot of how they are structured: An endowed fund reflects the bequest of a sum of money by a donor for specific charitable purposes or to support designated institutions. The principal of the endowment remains intact in perpetuity, while its earnings from investment returns is routinely distributed in support of worthy earmarked nonprofit programs and institutions.
The Foundation's development professionals are available to explain the mechanics and advantages of its various funds, working alongside donors and their professional advisors to best meet philanthropic, financial and estate planning goals.
Among these specifics, endowments held and managed by The Foundation can be either restricted or unrestricted. Restricted means that a donor limits the endowment gift to specific causes or an area of interest. An unrestricted endowment allows the gift to go to The Foundation's Permanent Legacy Fund that becomes part of a large pool used to fund ongoing grants to both the Jewish and the general community.
Unrestricted gifts are key resources for the community, as these funds continue to provide support no matter how needs evolve in the future. When the gift is unrestricted, The Foundation can use its expertise to select and fund nonprofit organizations that will deliver the greatest impact, especially those within The Foundation's priority areas.
Whatever type of endowment fund at The Foundation a donor ultimately chooses, the benefits are multifold. "Endowment funds last many years beyond a donor's lifetime to provide ongoing community support," explains Dan Rothblatt, The Foundation's senior vice president for philanthropic services. "Additionally, The Foundation ensures that the full philanthropic intentions of an endowment donors are realized-now and into the future. Furthermore, our strong, stable base of managed charitable assets and our investment acumen make The Foundation trusted stewards of innumerable legacies."