While all charitable gifts contribute to a common good, most gifts to the Foundation provide the added value of providing support to charities far into the future.
Gifts to the Foundation are carefully invested to generate a permanent source of income to charitable causes. This approach ultimately increases the value of every dollar given.
Example:
- Outright gift to Foundation: $10,000
- Grants generated to charity over 50 years: $36,259
- Value of gift after 50 years: $21,052
These figures are based on a fund which distributes grants at the Foundation's recommended annual rate of 5.5%, an 7% annual investment return and an annual administrative fee of 1%. And while an 7% average annualized return may or may not be sustainable over the next 50 years, the case for perpetual charitable funds remains compelling.
Both outright and perpetual gifts provide essential support to charities. Outright gifts provide charities with resources to meet immediate needs. But by providing an ongoing stream of income for years to come, the charities can make long-term plans and ensure their services are offered far into the future.
