Endowments can be traced back to the 11th and 12th centuries. As religious gifts to help the poor, they were administered by medieval bishops and priests. These days, an endowment gift can be made to a wide variety of charitable organizations and institutions. Endowment gifts can be made in a variety of ways:
- An outright gift during life. One of the most popular is a gift of cash. Cash gifts may be added to an existing endowment or used to establish a new endowment. Additionally, your contribution of stocks, bonds or mutual funds can serve as a memorial or tribute to a loved one.
- A deferred gift (such as a bequest through a will or trust). Your estate plan can provide endowment support through a gift by a will, life insurance, or beneficiary designation in your retirement plan or another financial account.
- A combination of both (such as a bequest that is added to an outright gift).
How does it work?
Just as an individual’s savings or investments can provide a degree of security, endowments provide charities with a stable source of funding for the future. The principal remains untouched in order to bring perpetual financial stability to the charitable beneficiary. A portion of the investment return from an endowment provides a source of income that generally is used to meet regular operating expenses or to fund specific programs of the designated endowment charitable beneficiaries.
Coordinate with professionals
Because an endowment is legally intricate, it is wise to work with an experienced attorney and gift planning staff. As with other types of charitable giving, you are eligible to receive tax savings. For many people, this plan is an easy and effective way to provide BGCEC with farsighted, ongoing and everlasting support.
Please contact your advisor to help with questions on your estate plans.
For more information about the Boys and Girls Clubs of East County Foundation, please call
619-440-1600 and ask for our Executive Director, Forrest Higgins.