An endowment fund is the storing of one or more gifts for long-term benefit to charity. It can be a one-person arrangement or it can be an ongoing arrangement where many people contribute.
Endowment funds, or long-term vehicles for charitable giving, are a valuable asset for churches, conferences, and institutions. If you have a vision for the longer-term, then using an endowment fund is for you. Endowment funds support the ongoing programs of organizations, whether locally, nationally, or internationally.
An endowment fund set up with Abundance Canada can serve the same purposes as a private foundation, with some added benefits:
- An endowment allows you to make ongoing distribution of earnings over time.
- An endowment fund can carry on a family tradition or honor the memory of a family member or significant leader in a church, conference, school, or other institution.
- Endowment fund earnings can be used to support operating budgets or ongoing programs such as scholarships and bursaries, missions, particular program emphases of your church or conference, school, or any other program carrying on charitable activity.
- Gifts to endowment funds are eligible for a charitable tax receipt at the time of the gift.
- You can determine which charities will benefit from your gift, both from the earnings and from the principal amount of your gift.
- Gifts of publicly traded securities receive preferred tax treatment when given to a public foundation such as Abundance Canada.
- Distributions to charity may be made anonymously.