There are many ways to support nonprofit organizations. You may make a one-time gift to support an event or program. You may give annually to your favorite organization. Perhaps you volunteer your time and talent to offset costs for a charity that is important to you. You could also establish an endowment fund. An endowment is a fund or group of funds that provides long-term support for a cause or organization. It is established with the intention to live on forever. Establishing an endowment fund with Berks County Community Foundation is a long-term way to support the organizations and causes that matter most to you. The endowed fund is invested, and a portion is given out each year for grantmaking to fulfill the charitable intent set forth by the donor(s). As the invested balance grows, more is available for distribution over time.
How does it work?
- An individual, group, or organization completes a fund agreement to specify the details of the fund and the charitable intent of the donor(s) and makes a gift to establish a fund with Berks County Community Foundation.
- Berks County Community Foundation manages and invests the fund to grow the balance.
- Each year, a portion of the fund (4.5%) is distributed based on the charitable goals set forth in the fund agreement.
- The remaining funds are kept in the endowment to grow over time.
Why is it important?
- Endowments provide an ongoing source of funding for charitable causes.
- Endowments can help nonprofit organizations that the donor selects expand their support and develop new programs.
- Endowments can help those organizations weather economic downturns.
How can I contribute?
- You can donate cash, stocks, real estate, or other assets to an endowment.
- You can receive tax benefits for your donation in the year you give.
- You can create a legacy of support by establishing an endowment.
- Others may give to existing endowments to increase their grantmaking dollars.
Berks County Community Foundation assesses management fees on the charitable funds it administers. These fees support costs for grant processing, contribution acknowledgment, audits, tax filings, and personnel. These fees are crucial to allowing us to fulfill our mission to promote philanthropy and improve the quality of life for the residents of Berks County.
Effective stewardship of philanthropic assets is key to our mission. The endowment funds we manage will live forever, and so will Berks County Community Foundation. We will never leave the area or go out of business, so we will always be here making the community a better place to live.
In this three-part series, we will explore endowment funds, sparking change, and grantmaking. At Berks County Community Foundation, we do all three. Whether you’re a nonprofit leader, philanthropist, or community advocate, this series will provide insight into how strategic funding can shape a better future.
To learn more about establishing an endowed fund with Berks County Community Foundation, please download our Giving Guide and feel free to email me at mollyr@bccf.org.
