The Power of Endowments: One Gift for Many Generations

June 26, 2017 1:33 pm Published by

An endowed gift lasts forever. It’s carefully invested – but never spent – and the investment returns power change in the community for generations. Endowments enable donors and nonprofit organizations to create a stable source of funding and invest in the future. A great example of an endowed fund at John Randolph Foundation is the Trudy Bogese Endowment for Youth Development, which awards summer camp scholarships to kids in Prince George County. The children of today, and their children, and their grandchildren will have the opportunity go to camp because of the fund.

Here’s how it works.

A donor or nonprofit organization makes a gift of $100,000 or more to JRF for a specific purpose. The endowed gift, also called the principal, is carefully invested but never spent. (The Colony Group manages JRF’s investments with oversight by our Investment Advisory Committee, comprised of volunteer Trustees and advisors.) Then, JRF gives away a portion of the fund’s investment returns annually through grants, scholarships, or awards, depending on the fund’s purpose. As you can see in the graph below, an endowed fund of $100,000 could give away $96,300 to the community over 20 years while growing the endowment to $131,935.

As the endowment grows, so does your impact on the community. Now that’s pretty powerful!

Note: These figures are based on a 6.1% investment return which has been the JRF average for the past 20 years.

JRF is able to manage endowed gifts because we are an IRS-designated 501(c)(3) charity and a public foundation. Donors create endowed funds at JRF for the causes they care about most, from scholarships to wellness initiatives to historic buildings.

We honor the charitable intentions of donors, consistent with community needs, and maintain a balance between donor involvement and governing board control, in accordance with all applicable laws and regulations. JRF’s Statement of Endowment Policy is available upon request.

If you are interested in learning more about endowments at John Randolph Foundation, please contact Kiffy Werkheiser, Development Program Officer, at 804.458.2239 [email protected]. If you would like to create an endowed scholarship, please contact Bonnie Falls, Scholarship Program Officer, at 804.458.2239 [email protected].

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This post was written by Kiffy Werkheiser

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