Endowment Giving
Many Nashville Area Habitat for Humanity partners who create planned gifts do so because they like the idea of building simple, decent houses after their lifetimes. Now there's a way to take these plans even further—by considering an endowment fund. Because an endowment fund only spends earnings, never principal, an endowed fund can support your favorite charity not just for a year or two after your lifetime, but forever. Endowment funds will be invested in a balanced portfolio of stocks and bonds with the primary objective of generating a reasonable cash flow while still keeping pace with inflation. Investment experts suggest it should be possible to distribute 4–6 percent of the fund balance each year to give more families a hand up out of poverty housing. Let's assume the middle ground of 5 percent and take a look at how an endowment gift might work out.
Suppose annual giving to Habitat is $1,000. A bequest or lifetime deposit in the amount of $20,000 at 5 percent should generate $1,000 annually, adjusted for inflation, forever. Of course, there can be no guarantees when stocks are involved, but wouldnt it be great to know you've made plans that continue Habitat for Humanity's important work for many years into the future?
Your Loyalty: Invaluable to Us—and Often Irreplaceable
Being able to count on money that is raised each year allows us to continue our important work. Yet when a person dies, so do his or her annual gifts. By creating an endowment, not only will you be helping people in need and investing in our future, but you will also be establishing your own "forever" legacy of generosity and caring.
A Smart Solution
Creating an endowment makes sense. An endowment involves establishing a bequest—a gift in your will or living trust—of an amount whose earnings create a gift for current use each year, forever. The income from the gift provides Nashville Area Habitat for Humanity with enough money to supplement our annual operating revenues and annual gifts. This is why endowments are extremely important to our future.
Two Options
Give to the Nashville Area Habitat for Humanity Endowment Fund at the Community Foundation at Middle Tennessee
Established in 2003, our endowment fund takes donations on a regular basis. Income from the fund helps support the ongoing work of the agency including building houses, developing land, educating partner families, and launching new programs like the Habitat HomeStores and ReBuild.
Establish your own legacy fund at the Community Foundation of Middle Tennessee benefiting the Nashville Area Habitat for Humanity
Donors can establish a Fund with a minimum contribution of $5,000 directed to provide regular endowed support to the Nashville Area Habitat for Humanity. Once established, The Community Foundation handles investment management and oversight, all accounting and financial reporting, and the funds annual audit. A legacy fund ensures that annual donations to the Nashville Area Habitat for Humanity continue after your lifetime and support the areas of the agency most important to you.
Learn More
Endowments are established for many reasons. Some people want to leave a legacy that will last for generations to come; others may want to honor or memorialize someone special with a lasting tribute. Endowments are sometimes used to satisfy a debt of gratitude—as a way to say thank you.
Please call Melissa Blackburn at (615) 254-4663 x245, or e-mail her at mblackburn@habitatnashville.org, for more information.