How an Endowed Fund Works:
- When you establish an endowed fund, you receive the maximum available tax deduction for the amount contributed.
- Your gift is invested and it, and all future earnings from it, grow tax-free, ensuring a permanent source of charitable support.
- You make charitable grants annually from your fund to the causes most important to you using a percentage of the fund’s long-term average market value.
- The fund’s principal grows over time, preserving your gift, and your legacy, for future generations.
Endowed Fund Advantages:
- Endowed funds have lower administrative fees - starting at only 1%!
- You can open a new endowed fund for $5,000
- Your gift will continue to provide a legacy of sustaining support to organizations important to you.
The graph below is a great example of how a CFL endowed fund works. It assumes a 4.5% annual spending rate and a 6.5% rate of return. These assumptions are consistent with CFL’s historical long-term investment experience.