Endowment FAQs

To give a gift that leaves a lasting legacy that reflects your faith and values.

An endowment bears fruit forever. It ensures your favorite charities receive a steady stream of grants each year, providing them with stable support forever.

A variety of assets can be used to fund an endowment. These include cash, appreciated securities, required minimum distributions from IRA accounts, real estate, personal property, and more.

There are no upfront, out-of-pocket expenses. Once the fund is established, there’s an administrative fee of 0.80 – 1.00% and an investment fee of approximately 0.75%.

Click here to learn more about what these fees cover.

You may see capital gains tax savings and estate planning benefits depending on your personal situation.

With an endowment, the beneficiaries are set by you and are unchanging. You can involve your family in that decision.

If you're interested in family philanthropy, you may want to consider a donor advised fund. Click here to learn more.

This is a common concern. Many people choose to give upon death through an estate gift. That way, they feel financially secure today, and they know they can still leave a lasting legacy.

You can also build your endowment over time. Gifting the annual required minimum distributions (RMDs) from your retirement account is one simple strategy.

CCF invests endowments according the USCCB’s socially responsible investment guidelines. We also leverage tactics like impact investing and corporate engagement to ensure our investments not only do well, but also do good. Click here to learn more about CCF's faith-consistent investment practices.

Endowments are invested in our long-term pool, which is diversified to yield steady, balanced growth over a long period of time. Click here for more information.

Endowments are designed to weather market changes by controlling the spending rate each year to preserve the principal. In years with higher market returns, the extra growth accumulates and acts as a cushion for years when the market is down.

No. Endowments are designed specifically to slowly grow with each passing year. There are even state and federal laws that govern the management of these funds to ensure they last forever. CCF always complies with these laws when stewarding your gift to provide your favorite charities with annual support in perpetuity.

We do everything with a Catholic heart. That means investing according to Catholic social teaching and the USCCB’s socially responsible investment guidelines. We also screen grantees for alignment with Catholic values.

The amount that is granted to your endowment’s beneficiaries is determined by a “spending rate.” Each year, CCF’s Investment Committee reviews and recommends a spending rate to CCF’s Board of Directors for approval. The rate is based on guidelines dictated by law.
These include:

• the preservation of the endowment
• current economic conditions
• the possible effect of inflation or deflation
• the expected return and appreciation of investments

The spending rate is currently set at 4% of the average fund balance over the previous 20 quarters. The ultimate goal when determining the spending rate is ensuring perpetual grants.

A beneficiary is a charity that benefits from your generosity. For example, if you list Catholic Charities as a beneficiary of your endowment, an annual grant will be given to them. You can list more than one charity as a beneficiary.

If a beneficiary closes during your lifetime, CCF will work with you to make necessary changes. If a beneficiary closes after your death, CCF will change the beneficiary to accomplish, as nearly as possible, the intended purpose of your gift. If your parish is merged, your gift will go to the newly-formed parish.

If you decide you’d like to change your beneficiaries, just give us a call. One of our friendly expert gift planning officers will help update your chosen charities.