Endowment funds have long been a source of perpetual support for missions and ministries.  Individuals establish funds for a variety of reasons: in memory of a loved one, to honor the accomplishments of someone dear, or to acknowledge the good works of a particular ministry. Churches and other Presbyterian-related organizations find endowment funds to be a secure and professionally managed option for long-term funds.

The Presbyterian Foundation currently manages over 7,100 endowment funds having a total market value of nearly $528 million, with fiduciary responsibility demanding prudent investment of the funds.  Endowment funds are invested to provide as much current income as possible while preserving the long-term value of the fund to support tomorrow’s mission needs.  The Foundation adheres to this strategy by using a spending forumula which pays beneficiaries on a total return basis - giving them the current income earned on the fund plus a portion of the growth of the fund.  This helps ensure the principal of the fund remains intact, keeps pace with inflation, and is available to generate payments in the future.  Another benefit of the spending formula is its ability to dampen the volatile effect peaks and valleys in stock market performance would otherwise have on payment to beneficiaries.

HONORING DONOR INTENT

Many of the endowment funds we manage are given for unrestricted use: allowing the beneficiary to use the income wherever the need is greatest.  Other funds include restrictions for the beneficiary’s use of the income to fulfill a partiuclar interest or passion of the donor. For example, a donor may restrict the fund to be used only for a music program or for a youth program. Those who have entrusted the Foundation with their endowment fund respect and trust our unwavering commitment to honor donor intent. The Foundation invests considerable time and resources to ensure the wishes and interests of its donors are fulfilled. This fiduciairy responsibility is fulfilled with a high level of care and professionalism.

THE FUND GROWS

An endowment fund can grow and provide additional support for the chosen beneficiary through its original investment and also through additional gifts to the fund.  Once an endowment fund is established, additions can be made by anyone in any gift amount. Donors often ask family and friends to make additions to a fund in lieu of a birthday or anniversary gift. Donations can also be made to a fund that supports a mission or minsitry that a departed loved one supported during his or her lifetime. Some churches encourage annual endowment fund gifts by members as a birthday thanksgiving offering, suggesting a gift of one dollar for each birth day anniversary. The possibilities for encouraging additional gifts are endless.

For information on establishing or contributing to an existing endowment fund, contact Pat Ohlmann at 800-858-6127 option 2 or jpo@fdn.pcusa.org