Guest Columnist: 5forCNY and the Power of Endowment: Investing in Good. For Good
By Jan LaneMost of us want to build generational wealth for our loved ones. This might include naming them in a will or setting up a trust that will create lifetime support.What if I told you we also have an opportunity to build generational wealth for our community and the causes we care about?The Community Foundation’s 5forCNY campaign is all about encouraging every Central New Yorker to invest in the future of the community by providing lasting support for local nonprofits.What does that look like? Endowment.Charities rely on gifts from donors to operate, and those donations can fluctuate over time. Endowments are like a financial safety net for universities, hospitals and nonprofits. Think of an endowment as a giant savings account filled with donations, which gets invested to grow over time. The money earned from these investments helps sustainably fund scholarships, cutting-edge research and crucial community programs.Following are some frequently asked questions about endowments:Q.: Who can establish an endowment fund?Many charities establish endowments to help ensure that their missions stay strong during economic downturns and periods of increased community need. Many individuals, families and corporations also create endowments to provide a sustainable stream of funding for their communities and favorite (more…)
