Investing with Faith / Kimberly Pohovey

Endowments support Christ’s mission now and for the long term

Wise stewards know that it is important to maintain a balance between providing for their current needs and being able to provide for the needs that will arise in the future. Figuring that out is usually the key to managing our resources—our blessings—well.

When it comes to planned giving, many of us make the mistake of thinking that we have to make a choice between providing immediate financial support to the causes that are important to us or creating a vehicle that will fund them in the future.

The good news is that doesn’t have to be the case. With endowment funds, it isn’t. An endowment fund enables donors to support the Church’s mission both now and for the long term.

How do endowments work?

An endowment is a permanent fund established by a person or organization. Because the money in the fund is invested, the value of the endowment grows through time by utilizing the growth of the market.

The principal is never touched, but each year, a portion of the fund’s growth—currently set at 5%—is distributed to support the ministry or mission designated as the beneficiary. The remaining interest earned is reinvested to keep the endowment growing.

When does a gift have impact?

Endowments begin making a difference immediately. Annual distributions benefit the Church’s mission, specifically those ministries and organizations close to the donor’s heart, every year from the start. And the continued growth of the invested fund provides ongoing support in perpetuity. That’s the kind of long-term financial sustainability that keeps ministries going and growing.

How long does an endowment last?

An endowment fund is designed to last forever. Remember, it is a permanent fund. While many other vehicles for giving have an expiration date, endowments do not.

This means that every contribution a donor makes, one time or more than once, keeps having an impact year after year.

Does the Catholic Community Foundation (CCF) have experience with endowments?

You might be surprised to learn that CCF currently manages more than 600 endowment funds with combined assets of more than $220 million. That enabled us to give away more than $10 million in support to Catholic ministries and charitable organizations throughout the archdiocese last year.

How are investment decisions made?

With CCF, you don’t have to wonder—or worry—about how your gift is invested. We follow the U.S. Conference of Catholic Bishops’ socially responsible investment guidelines. That means that the growth of your endowment fund will come from investments that are completely aligned with the teachings of the Catholic Church. All investment decisions are based on Catholic moral principles.

What kinds of things do endowments support?

Endowments have made so many good things possible! These include financing student scholarships, priestly formation, professional development, cemetery maintenance, ongoing operation costs, and even giving support to needy sister parishes in Haiti and Guatemala.

Our ministries in central and southern Indiana reach out with the compassion of Christ where it is needed most. The works of mercy are at the heart of Jesus’ commandment: to love one another the way he has loved us. (Jn 13:34) For many, the Church’s initiatives aren’t just a lifeline—they’re life-changing.

Are endowment funds right for you?

New endowment funds can be created with a minimum donation of $5,000. Donors can also give to any of the CCF’s more than 600 existing funds.

Interested in learning more? The CCF staff is here to help. Contact us at ccf@archindy.org or 317-236-1482.

(Kimberly Pohovey is the director of major and planned gifts for the archdiocese. Tax or legal information provided herein is not intended as tax or legal advice. Always consult with your legal, tax or financial advisors before implementing any gift plan. For more information on the Catholic Community Foundation, visit www.archindy.org/CCF, e-mail ccf@archindy.org, or call 317-236-1482.) †