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Custom Giving Solutions

Endowments

Endowments created through Community Foundation Tampa Bay provide ongoing support for your favorite charities, ensuring their mission and your legacy will continue for years to come. By establishing an endowment, you create a long-term, self-sustaining source of funding that grows and generates income over time. These assets are carefully invested to yield a perpetual annual gift without touching the principal, providing stability, a consistent source of revenue, and lasting impact.
Custom Giving Solutions

Endowments

Endowments created through Community Foundation Tampa Bay provide ongoing support for your favorite charities, ensuring their mission and your legacy will continue for years to come. By establishing an endowment, you create a long-term, self-sustaining source of funding that grows and generates income over time. These assets are carefully invested to yield a perpetual annual gift without touching the principal, providing stability, a consistent source of revenue, and lasting impact.

How Endowments Work

Each year, a portion of the endowment’s accrued value is paid out, distributed on your behalf by the Community Foundation’s financial team. This allows for a steady, permanent source of income to your nonprofit or cause of choice.

At Community Foundation Tampa Bay, endowments can be established with a minimum of $25,000. We manage, administer, and invest the endowed funds, maximizing growth. In return, your organization or cause of choice receives a specified annual distribution, enabling them to plan and execute their initiatives with greater financial confidence and you to ensure your lasting legacy.

The Community Foundation is dedicated to further maximizing impact with the Endowment Match program for nonprofits and individual donors. Gifts made through this program may qualify to add an additional $25,000 to your endowment contribution of $100,000 or more. Opportunities are limited each year.

Types of Endowments

Endowments can be set up in a variety of ways, depending on your wishes.
Designated Funds
With a Designated Fund, proceeds from your endowment are designated directly to one or more specific nonprofits of your choosing in perpetuity.
Fields of Interest
In a Field of Interest Fund, the proceeds are distributed to an area of impact, such as education, the arts, the environment, or something else important to you.
Scholarship
Endowing a scholarship helps support education by identifying through set criteria the type of student(s) you would like to support in their post secondary education.

Advantages of an Endowment

Establishing an endowment with Community Foundation Tampa Bay offers several key advantages:

Long-Term Financial Stability: By investing in an endowment, you create a perpetual source of funding for your designated cause or nonprofit(s), allowing them to plan and execute programs with greater confidence.

Sustained Impact: Endowments help ensure that your cause or nonprofit of choice can maintain its mission, even in times of funding fluctuations.

Professional Management: Our investment team manages your endowment, allowing you to benefit from professional investment strategies and oversight.

Preservation of Capital: With a targeted return of 7% and a modest administrative fee, your endowment is structured to grow over time, preserving its purchasing power.

FAQs

How does the endowment grow over time, and what return can I expect?

Endowment funds are intended for perpetual asset growth, invested to enhance their value over time. We target an annual average return of 7% of the invested funds. This target helps ensure that the endowment grows in real terms and continues to support your organization or cause of choice well into the future. By partnering with Community Foundation Tampa Bay, you can set up an endowment that not only supports your favorite causes or nonprofit organizations today but also strengthens their ability to thrive well into the future and ensures their lasting legacy.

How do endowments work?

Community Foundation Tampa Bay manages your endowment by integrating the funds into a high-performing investment pool overseen by our experienced financial team. Or, your endowment can be managed by a trusted advisor of your choice through an Individually Managed Charitable Account. Endowment funds aim to preserve the principal by adhering to an annual distribution rate. Each year, your designated nonprofit organization (or those within your field of interest) receives an annual distribution from the endowment, which is calculated according to our spending policy. Currently, our policy allows for a distribution rate of around 4-5% of the endowment’s average value depending on market projects for the year.

Learn more about other ways to become a fundholder and make a difference with Community Foundation Tampa Bay.