Endowment & Long Term Funds

Long Term Funds

Long Term Funds for Individuals and Families

Throughout and even beyond your lifetime, a long term fund maintains a connection to the organizations and causes you value. For example, some of the Foundation’s personal endowment donors have created decades of annual support for their own congregations, a non-profit housing complex, peace and justice work, and Mission & Service. You can create a long term fund to give to the same organizations year after year, or provide instructions each year for the use of the funds. Long term funds can be established during your lifetime or through a bequest.

The Foundation’s long term funds are invested in enterprises that support United Church values and are carefully stewarded so they generate income to support ministries year after year, decade after decade.

Endowment Funds

A Personal Endowment is a fund where the capital is held in perpetuity and must have a balance of $15,000 for grant-making to begin. You may accumulate the fund by making several contributions over a period of years, or begin it during your lifetime and complete it through a bequest. During that stage, your fund is known as an “Emerging Fund.” Income is reinvested to help bring the fund to its $15,000 threshold. At that point, the grants are directed to the congregation(s) of your choice.

Under normal circumstances, the Board of Directors will distribute 3.5% of the average value of your endowment over the last two years.

There is an annual administration fee of 1.5% to cover the costs of maintaining and tracking your fund. Any remaining income is reinvested in your fund.

You may name the fund, or choose anonymity if that is your preference. With your permission, we will acknowledge the fund in our annual report, and other publications from time to time.

Other Long Term Funds

A long term fund is a fund where the capital and income are dispersed over time so that the fund may reach a balance of $0 at some point in the future.

Just as with an endowment fund there is an annual administration fee of 1.5%, any remaining income is reinvested in your fund, and you may name the fund, or choose anonymity if that is your preference. With your permission, we may acknowledge the fund in our annual report, and other publications from time to time.

For more information please look at our Trust and Endowment FAQ sheet.

If you would like to explore the opportunity to build a Long term or Endowment Fund, contact the Foundation at 1-866-340-8223 or by e-mail.

Long term Funds for Organizations

There are two flexible options within the Foundation for organizations looking for creative, low maintenance ways to steward their long term funds. The first is to create an Organization Endowment Fund where the Foundation holds the capital in perpetuity. These funds must have a balance of $15,000 for grant-making to begin. You may accumulate the fund by asking your members to make contributions either directly to the Foundation (in which case, we’ll provide the tax receipt) or the organization can make a gift or several gifts over a period of time. Until the fund reaches $15,000 income is reinvested to help bring the fund to the threshold. At which point, the grants are directed as per the agreement we set up collaboratively to best meet your needs.

Once the fund balance has reached $50,000, the annual grants from your Personal Endowment may be directed to non-church related registered Canadian charities. Under normal circumstances, the Board of Directors will distribute 3.5% of the average value of your endowment over the last two years.

There is an annual administration fee of 1.5% to cover the costs of maintaining and tracking your fund. Any remaining income is reinvested in your fund.

With your permission, we will acknowledge the fund in our annual report, and other publications from time to time.

Faced with the difficult decision to close, Ellesmere United Church in Burnaby BC sought a way for the important work of their congregation to continue. By creating a Long Term Fund with The United Church of Canada Foundation they created a legacy reflective of their ministry. This is what they did.

 

Other Long Term Funds

A long term fund is a fund where the capital and income are dispersed over time so that the fund may reach a balance of $0 at some point in the future. Disbursements from these would typically be 10% per year or a specific amount decided upon the creation of the fund.

Just as with an endowment fund there is an annual administration fee of 1.5%, any remaining income is reinvested in your fund. With your permission, we may acknowledge the fund in our annual report, and other publications from time to time.

For more information please look at our Trust and Endowment FAQ sheet.

If you would like to explore the opportunity to build a Long term or Endowment Fund, contact the Foundation at 1-866-340-8223 or by e-mail.