When you visit the Moline Regional Community Foundation (MRCF) website, you will see the term endowment referenced multiple times. Encouraging and inspiring people to give back to the community through endowments is our primary purpose and more than 120 organizations, families and individuals currently have an endowment with MRCF.
How is an endowment different from other acts of philanthropy?
Endowments are permanent gifts designed to provide annual financial support to nonprofits or causes the donor has designated. Endowments keep the principal donation amount intact, while the interest and income earned is used to provide funding. This allows the donor to continue giving to a beloved cause into perpetuity.
An endowment leaves a legacy.
As the Michigan State University School of Law explains, an endowment allows a donor to make a contribution that “leaves a legacy for generations to come.” It’s common for people to leave endowments to institutions and causes significant to their own lives. A successful entrepreneur who discovered self-discipline through competing in tennis might leave a tennis scholarship for underserved youth. A Board member of a nonprofit may establish an endowment to support the causes they care deeply about. To see examples of local people just like you leaving a legacy, please click here.
Things to consider when setting up an endowment.
Like any big financial decision, setting up an endowment requires thoughtful planning. A few recommended basic steps:
Identifying what causes and organizations you care deeply about
Contact MRCF staff to see what is currently established in the community
Review various types of endowment funds
Work with your professional financial services relationships to decide on how best to fund
This includes retirement assets, securities, estate plans, etc.
When you are ready to change our community for the better, forever, through an endowment, the professional staff at MRCF are here to assist you. Let’s Talk!
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