Other Ways to Give
There are a number of ways you can support the health of our community.
Endowments include the donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. There are four different types of endowments:
- Term endowments usually stipulate that only after a period of time or certain event can the principal be expended.
- Unrestricted endowments are assets that can be spent, saved, invested and distributed at the discretion of the institution receiving the gift.
- Quasi endowments are donations made by an individual or institution, given with the intent of having that fund serve a specific purpose. The principal is typically retained, while the earnings are expended or distributed per specific requests of the donor.
- Restricted endowments have their principal held in perpetuity, while the earnings from the invested assets are expended per the donor’s specification.
Oftentimes, companies will match donations that their employees make to charitable organizations. When employees make a donation, they request a match from their employer, who then makes a donation to the same organization.
This form of giving often stems from capital projects like creating a new facility, but they also can come in other forms like sponsorships or dedicated scholarships.
Instead of being made from discretionary income like a pledge or sponsorship, planned gifts are major donations that are part of a donor’s financial or estate planning. Planned gifts include gifts that use appreciated assets in place of giving cash, such as property, securities or real estate.
End-of-life gifts are also common, and these include naming the organization as a beneficiary in wills, bequests, life insurance policies or retirement accounts. Additionally, there are gifts that return income to the donor in return for the contribution, such as annuities, mutual funds or trusts.