For individuals and organizations who are looking to make a long term-impact on the well-being of our community, the Homer Foundation offers a variety of fund options, including endowed and non-endowed funds.
What is the difference between an endowed fund and a non-endowed fund?
The capital that is donated to an endowed fund is invested and never spent. Instead, the Foundation will make income available to grant yearly awards to the charity or cause that supports the fund or donor’s interests. Because the capital is never touched, an endowment can last indefinitely.
A non-endowed fund may use the capital that has been donated, as well as any interest and earnings, to support a charitable purpose that the donor has chosen. When all of the capital has been administered through grants, the fund ceases to exist.
Choosing an endowed fund
An endowed fund offers a way for donors to fund a cause or organization they believe in, forever. Permanent gifts provide the peace of mind knowing that the community issues and organizations you care deeply about will be funded on a regular and sustainable basis, both now and long after you are done.
Donors recognize that endowments are particularly important when lean economic times hit, as they provide a base of funding that may allow the Homer Foundation to support community issues, even when annual donations are scarce. This is a way to support and organization’s sustainability and ensure that the work continues indefinitely.
Choosing a non-endowed fund
Many donors are motivated to give during their lifetimes but are not seeking perpetuity. A non-endowed fund enables you to be responsive to immediate community needs with the full value of the fund.
Sometimes, starting out with a non-endowed funds helps a donor test the investment waters. It is a good alternative for those who want to provide grants for only a certain number of years. Often, many community foundation donors that start out with a non-endowed fund ultimately build it into an endowed fund.
The primary difference between an endowed fund and a non-endowed fund is the permanency.
Creating an endowment is like planting a tree that will provide fruit for every season for years to come.
For more information, go to our Establishing a Fund page or contact the staff at 235-0541 or email@example.com.