An organizational endowment specifically supports a school, parish, ministry or Catholic cause.
Gifts to the endowment are not spent and 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.
Growing the endowment fund with FUTURE gifts:
- The easiest way to grow the endowment fund is by working with NMCF to encourage organizational donors to leave a Catholic legacy to the fund through their will or estate.
- Estate or planned gifts can be from various types of assets and in any amount, including cash, charitable remainder trusts, stocks, retirement assets, life insurance, or charitable gift annuities.
- Promoting estate gifts typically does not affect weekly collections for parishes, annual fund or capital campaigns or other fundraising which target’s donor’s cash.
Growing the endowment fund with CURRENT gifts:
Consider donating any excess organizational revenue at the end of the fiscal year to the endowment.
- Add an endowment portion to all capital campaigns or conduct an endowment campaign.
- Parishes can tithe to the endowment from all parish or school fundraising activities or hold specific fundraising events for the endowment.
- Encourage and accept current gifts of cash, securities, real estate, or life insurance for the endowment from donors and parishioners.
- Distributions are based on the NMCF Distribution Policy established by the NMCF Board of Directors. Currently the NMCF Distribution Policy is 4.5% of a 12 quarter rolling average of the fund’s total net balance.
- Distributions are made directly to the parish, school, or Catholic organization annually.
- Funds held in the endowment sub account may be accessed with 60 day written notice to NMCF, however shall not exceed one-third the value of the entire fund.
- The parishes, schools, and organizations can rely on these annual distributions for financial support today, tomorrow and forever.