What is an endowment?
A Gift of an Endowment, a Key Component to FACT Bucks County’s future success.
The word “endowment” has a couple of meanings. One definition refers to the big picture — the total value of an institution’s investments. The word is also used to describe the individual gifts that make up that larger endowment. These gifts support the ongoing goals of FACT Bucks County to “provide essential emergency funding to individuals in the community living with HIV/AIDS in Bucks, Hunterdon and Mercer Counties. When all other funding resources have been exhausted, FACT funds are available to people who have nowhere else to turn for such things as medication, electric & heating bills, counseling, special equipment, transportation, rent, and other personal financial needs.” FACT Bucks County also issues grants to local organizations for Education and Prevention Programs. We also offer a Scholarship Program for local students.
What endowment funds are considered acceptable?
Cash, pledges, gifts of appreciated stocks or assets, gifts of life insurance, assets from a retirement plan, Charitable Lead Trust, Bequests, gifts from annuities or any other investment vehicle as deemed acceptable by the Endowment Committee.
How are endowment funds distributed?
After a supporter makes an endowment gift, the principal is deposited in an investment account, and only the endowment’s annual income is used for the chosen purpose. So, as an example, if a donor makes a $500,000 endowed gift, a set percentage of the interest building off that amount goes to fund grants and scholarships each year. Endowments last forever and touch many lives as the principal grows over time.
FACT’s Endowment Committee will determine the amount of withdrawals as well as the purpose of the funds. Committee members shall meet (in person or virtual) on a regular basis. A quorum is needed for decisions on investments, withdrawals, fundraising for the endowment, creating reports on the status of the endowment fund’s investments and distributions/withdrawals.
I want to make an endowment gift, but I can’t do it now. What are my options?
You may want to consider a planned gift. Donations through wills or trusts support FACT Bucks County and can create lifetime income for FACT’s programs. Some planned gifts make the supporter eligible for estate tax deductions. When donors let FACT Bucks County know about these commitments, it gives us the chance to answer questions, recognize the donors’ generosity, and tell their story to inspire others to make similar commitments.
How are funds invested and how are endowment donors recognized?
FACT Bucks County will follow the principles of Prudent Investment Practices; a fiduciary will invest trust assets. The managing investor will consider the need of the Trust’s beneficiaries, the provision of regular income, and the preservation of the trust assets and will avoid investments that are excessively risky. “The Prudent Investor Rule” states that the decision-making process must follow certain guidelines, even if the final result does not satisfy the original intent.
Endowment donors are recognized by personal letter of gratitude, general announcements*, social media*, and listed as a donor on FACTBucksCounty.org Endowment pages*.
*Unless otherwise directed.
For more information, contact FACT Bucks County at 215-862-3325 or by email at INFO@FACTBucksCounty.org
ADDRESS: FACT Bucks County, PO Box 72, New Hope, PA 18938