How to fund your endowment

“Only rich people can create endowments.” Has this thought ever crossed your mind? If so, the next few paragraphs may change your mind. You’ll discover that nearly anyone, with a little planning, can establish an endowment. 

Do it now. 
Some folks prefer to establish their endowments now so they can enjoy watching them grow and benefit your favorite Catholic ministry. 

1. Use cash. Finding enough cash to launch an endowment is always a possibility. Sometimes we receive an unexpected windfall through an inheritance or the larger-than-expected proceeds from the sale of a valuable asset.  

It may also be helpful to know that the Catholic Development Foundation allows a donor to fund an endowment over a period of years. Spreading cash gifts over several years may also have tax benefits for you, such as the generous ND tax credit.   

2. Use securities. Do you have publicly traded stock that is highly appreciated in value but low in dividend return? Why not use this to start your endowment? Since the Catholic Development Foundation can sell your stock without incurring a capital gains tax, it may be the perfect funding method for you. 

3. Use tangible property. Almost anything of value—cars, boats, homes, etc.—can be given to the Catholic Development Foundation. We will sell the item(s) and place the proceeds in your endowment. 
 
Do it later.
While it may not be feasible to start an endowment now, your estate will likely have enough resources at your death. Consider these possibilities: 

1. Use the remainder of a trust. Donors sometimes establish a trust during life to provide themselves with ongoing income. When they are gone, whatever remains in the trust is disbursed according to instructions in the trust document. This, of course, can include the funding of an endowment with the Catholic Development Foundation.  

Trusts are very popular as gift and estate planning tools and may provide you with an excellent way to establish your endowment. 

2. Use insurance proceeds. Do you have a life insurance policy you no longer need for protection? You could sign part or all of the policy over to the Catholic Development Foundation for creating an endowment when you are gone. 

3. Use a bequest from your will. The most popular way to fund a future endowment is to earmark a portion of one's estate for this purpose. If you do decide to create an endowment through a bequest, be sure to talk with our planned giving director to make sure your attorney uses our proper legal name and address. 

Do it now AND later​.
You may want to start your endowment now, modestly, and then add to it later through your estate plans. This way you could see the fund in operation and enjoy knowing the good it does.