An endowment is a legal instrument involving a donor and a charitable organization. It provides a dependable stream of income that supports the organization’s ongoing operations or a specific program-oriented goal. Endowments can exist for a defined period of time or in perpetuity.
Legacy Deo manages nearly 300 endowments benefiting congregations, schools, institutions, and nonprofit organizations. Our endowments can be structured as donor-advised funds, meaning the donor or donor family can change its charitable recipients year after year. Because we are organized as a 501(c)(3), amounts contributed to endowments are tax deductible by the donor. The minimum amount to establish an endowment with us is $10,000.
Our targeted annual distribution rate for endowments is 4% of the fund’s assets, averaged over the previous twenty quarters. This rate is evaluated annually by our Board of Directors. Endowments can also be structured to pay a fixed annual percentage.