A strong endowment ensures an enduring source of funding for immediate and future needs. Endowments grow over time to create a legacy of learning and scholarship as they extend the impact of the donor’s generosity beyond a lifetime.
How It Works
The principal is invested and a portion of the fund’s value, currently between 3-5 percent, is made available each year to support the purpose determined by the donor. To guard against the eroding consequences of inflation, the remaining portion of investment return is then added to the principal. The goal is to ensure that the principal maintains its purchasing power.
Endowments can be created with gifts of cash, securities, and other assets. They can be established through one-time gifts, estate gifts, and multiyear pledges. Although the minimum amount required to create an endowment fund is $25,000, larger amounts are recommended or required for certain purposes. Gifts at these levels may offer donors naming opportunities.
To create an endowment fund:
- Contact the Beverly Wadsworth at the Minneapolis College Foundation (beverly.wadsworth@minneapolis.edu) or by calling 612-659-6820 who will assist you and/or your professional advisor in creating a fund in accordance with your wishes.
- Beverly Wadsworth will help you draft, complete, and sign a fund agreement outlining the gift’s purpose, along with the investment and payout.
- Upon receipt of the gift, the Minneapolis College Foundation will establish the fund and distribute the annual payout amount for your designated purpose.
