What is an Endowment?

An endowment is a fund that is intended to last into perpetuity. 

An endowment is a tool used to provide perpetual benefit to a charitable organization. The core endowment is invested and earnings generated are granted back to the organization. Endowments are a successful tool to diversify long term planning for a charitable organization and provide for an annual gift each year.

Gifts to the endowment are invested so that the earnings and market growth from the gifts provide distributions for the intended Catholic parish, school, organization or cause. At NMCF, organizations can elect to include an endowment sub account which would allow for a portion of the fund to remain accessible. This is often attractive for organizations that want to retain annual earnings which will be spent in the near future, but not immediately.

An endowment is NOT:

  • A maintenance fund or capital fund, although distributions may be used for those purposes 
  • To be borrowed against or spent out 

Annual Distributions:

  • Distributions are based on the NMCF Distribution Policy established by the NMCF Board of Directors.
  • Distributions are made directly to the parish, school or Catholic organization annually.
  • The parishes and schools can rely on these annual distributions to support the parish today, tomorrow and forever.

NMCF is here to help you grow your endowment fund. You will receive annual reports on the size and activity of your endowment fund. NMCF keeps permanent records of all donations to the funds and tracks the principles of endowments and total in sub accounts. NMCF oversees the investments in a diversified portfolio following the United States Conference of Catholic Bishops Socially Responsible Investment Guidelines.