Establish A Fund

Power of Endowment

Providing for Community Needs in Perpetuity

Endowments carry an inherent power to provide for community needs in perpetuity through continued growth. Over time, distributions exceed the original gift, while the fund balance continues to grow, thanks to responsible management.

En·dow·ment

noun

A permanent fund in which the principal is preserved and invested, with a portion of the earnings distributed annually for charitable purposes.

Establishing A Fund Through Unity Foundation

Creating a fund within Unity Foundation of La Porte County is an easy process. By working with you individually, as well as your financial advisor, our staff  is able to customize a fund to achieve your philanthropic goals. Unity Foundation of La Porte County generally uses the following process when creating a new endowment fund.

For more information, contact Jamie Miller at:

  • (219) 879-0327

  • jmiller@uflc.net

1. Meet with Foundation staff to discuss philanthropic goals.

2. Determine organization, institution, or cause to benefit from the fund.

3. Determine restrictions that may be placed on the fund’s income.

4. Unity Foundation of La Porte County will ensure that benefiting organization is qualified to receive grants according to IRS regulations.

5. Unity Foundation of La Porte County will draft an endowment fund agreement.

6. Founder of fund will review the endowment fund agreement outlining purpose of the fund to assure that charitable desires are correctly defined.

7. Founder of the fund will sign the fund agreement and make contribution to establish the fund ($5,000 minimum).

8. Unity Foundation of La Porte County Board will review and approve the fund agreement.

9. Fund will be invested with Foundation’s endowment pool, increasing its earning power.

10. When the fund balance reaches $5,000, assuming it has been invested for no less than one year, the fund may begin making grants from the generated income. The organization has the annual option to reinvest the income to help grow the fund.

11. A fund statement will be sent on an annual basis showing all fund activity for the prior year.

How does it work?

The following is an example of the projected growth of an unrestricted endowment fund with a beginning balance of $25,000.

Your Gifts, Your Legacy

By endowing your gifts today, you can make a difference in your community during your lifetime and provide a gift that lasts forever. We’ll make grants in the name of your fund forever. We’ll always honor your charitable wishes, even if an organization receiving grants ceases to exist in the future.

Security and Stability

Nonprofit organizations work with Unity Foundation to establish agency endowments. Investment management and professional accounting yield a constant source of funding to help organizations respond to emergency needs, plan for the future, and sustain the good work they do.

Expert Help

When donors or nonprofit organizations work through Unity Foundation to achieve their charitable goals, they benefit from the expertise of experienced local program staff, community leadership, and investment management.

Considering an endowment? We can calculate your gift’s potential over time. Contact us to discuss your preferences.

Benefits of Non-Profit Operating Endowment Funds

Economical

Even small nonprofit organizations can benefit from professional investment management, including diversification and lower investment fees.

Efficient

A fund can be established using a simple fund agreement. An nonprofit endowment is a simple mechanism for accepting planned gifts, such as bequests and charitable trusts.

Easy

The organization is not responsible for investing the assets or for any record keeping.

  • Meet with the Foundation staff. We can provide you with the facts and benefits of the Nonprofit Operating Endowment Fund.
  • Determine organizational readiness. It is highly recommended that the Nonprofit Board complete a staff and board assessment to determine organizational readiness.
  • If, after assessment, the Board determines that it is prepared to establish an endowment fund, members will meet with Unity Foundation of La Porte County staff to discuss.
  • Unity Foundation of La Porte County will ensure that the nonprofit is qualified to receive grants according to IRS regulations.
  • Unity Foundation of La Porte County will draft an endowment fund agreement.
  • The Nonprofit Board will review, sign, and return the agreement to Unity Foundation of La Porte County with a contribution to establish the fund (No minimum is required, but a fund must have a minimum $10,000 balance to generate a grant).
  • The fund will be invested with the Foundation’s endowment pool, increasing its earning power.
  • When the fund balance reaches $5,000, assuming it has been invested for no less than one year at the Foundation, the fund may begin making grants from the generated income to the establishing organization. The organization has the annual option to reinvest the income to help grow the fund.
  • A fund statement will be sent on an annual basis showing all fund activity for the prior year.

  • Presentations to your board
  • Marketing materials and fund promotion documents
  • Responding to inquiries from potential donors
  • Meeting with major gift prospects
  • Managing complicated gifts (real estate, stock, etc.)
  • Acknowledging all gifts to the fund

  • Meet with Foundation staff to discuss their philanthropic goals.
  • Determine nonprofit to benefit from the fund.
  • Determine restrictions that may be placed on the fund’s income.
  • Unity Foundation of La Porte County will ensure that benefiting organization is qualified to receive grants according to IRS regulations.
  • Unity Foundation of La Porte County will draft an endowment fund agreement.
  • Founder of fund will review the endowment fund agreement outlining purpose of the fund to assure that charitable desires are correctly defined.
  • Founder of the fund will sign the fund agreement and make a contribution to establish the fund.
  • Fund will be invested with Foundation’s endowment pool, increasing its earning power.
  • When the fund balance reaches $5,000, assuming it has been invested for no less than one year, the fund may begin making grants from the generated income. The organization has the annual option to reinvest the income to help grow the fund.
  • The donor will receive a fund statement on an annual basis showing all fund activity for the prior year.