Endowments
DRAA Endowment Q&A
General Questions | Endowment
Fund Management | Matching Gifts
What is an endowment?
An endowment is an investment fund set aside for the long-term support
of an organization. Only the income, or a portion of the income, is available
to spend. The principal is preserved in perpetuity. That is, it is held
forever in the organization's name.
An endowment is a permanent pool of assets that is invested in a disciplined
manner to grow over time. Endowment gifts can be made at any time of the
year, consisting of:
What are planned gifts?
A planned gift is a future-oriented
charitable donation that requires planning on the part of the donor, usually
in consultation with an attorney or financial advisor. It is typically
larger than an annual donation and can be done during your lifetime or
in your will. Planned gifts offer multiple benefits to the donor, including
recognition in our planned giving society, tax benefits and estate planning
advantages. Planned gifts are tools for making dreams come true for donors
and for arts organizations.
-
Planned gifts are made from assets other than cash and enable donors
to maximize charitable support, reduce tax burdens, and often receive
income for life.
- The
most common type of planned gift is the charitable
bequest
- Other
forms of planned gifts include life income gifts such as charitable
gift annuities, and charitable remainder trusts
Why give to the DRAA Endowment Fund?
-
To provide a consistent source of operating revenue for art organizations
in our region
- To
endow your annual donation to the arts
- To
create new performing and/or visual projects and programs or to enhance
existing ones
- To
promote financial stability and fiscal responsibility
- To
join a group of visionary arts leaders and supporters
- To
create longevity and independence for your favorite arts organization(s)
What are the benefits for arts organizations of building an endowment?
- Endowments
produce a steady stream of income to support an organization's day-to-day
operations or special programming.
- Endowments
are a means of ensuring the future stability of arts organizations.
- Organizations
with endowments are viewed as being financially responsible and forward
looking - which can attract donors' support for artistic programming.
- Over
time, an endowment can become a significant source of income through
the addition of further contributions and wise investment.
- A
substantial endowment provides a solid financial foundation, giving
arts organizations additional freedom to pursue artistic visions and
goals.
DRAA Endowment Fund Management
How will the DRAA Endowment Fund be administered?
A six-member DRAA Endowment Fund Committee will oversee the management
of the funds as well as develop fund-raising strategies.
How will the DRAA Endowment Fund be managed?
The DRAA Endowment Committee will develop investment and fund-raising
policies and guidelines. The Committee will administer and invest the
money in the fund. Interest and dividends from the investment of the funds
will be appropriated annually to the DRAA. As with any public or private
foundation, the DRAA Endowment Fund Committee must comply with applicable
state and federal laws regarding fund management and allocations.
How will the DRAA allocate these funds to arts organizations?
The DRAA develops programs and services based upon art organization need
and direction from the DRAA Board of Directors through a strategic planning
process. Grant guidelines are reviewed prior to reviewing grant applications
from arts organizations.
Matching Gifts
What are matching gift companies?
Thousands of companies and corporate foundations in the United States
currently match their employees' gifts to nonprofit organizations. Under
a corporate matching gift program, gifts made by a company's eligible
employee or employee's spouse are matched with company or corporate foundation
funds.
What does the donor do?
To initiate a matching gift, a donor fills out the company's matching
gift form (available through the benefits office) and sends it along with
his or her donation to DRAA.
What does DRAA do?
DRAA completes the form and returns it to the company.
What does the company do?
The company then sends a check to DRAA.
What calendar does DRAA use to recognize gifts?
DRAA recognizes gifts according to the organization’s fiscal year,
which runs from July 1 to June 30. Gifts received between July 1, 2002,
and June 30, 2003, will be counted as fiscal year 2003 gifts.
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