Giving FAQs
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Can I be specific about how my contribution is used?
Yes. Some donors know exactly where they want their contributions to go. In these instances the Community Foundation’s responsibility is to ensure that the recipient organization is a legitimate non-profit entity with an active board that meets the standards of the Foundation.
What does the Community Foundation do with the money people give?
It depends on why people give their money. If the contribution is meant to go to a specific cause or charity, that is where the money goes. If the organization designated by the donor is unknown to the Foundation staff, some review will be necessary.
Who gives to the Community Foundation?
About 90% of the contributions the Foundation receives are under $1000. Sizable donations often come from individuals who own local companies, people who have inherited family estates, and government agencies that want a good partner. The thread that connects all these donors is that they want to see this community thrive.
What is an Endowment?
The definition of “endow” is “to provide an income.” Let’s take the example of Denise Beaulieu, the attendant who took our money each day for parking in the building where the Foundation offices were located. At her death, Ms. Beaulieu left her entire estate, $77,000, to the Foundation to create an endowment for the benefit of the El Paso Chapter of the American Red Cross.
The $77,000 was deposited with other contributions to the Foundation and invested by professional money managers using guidelines established by the Board of the Foundation. Each year the beneficiary of the fund, the Red Cross, gets 5% of the year-end fund balance.
To combat the impact of inflation, the endowment managers use a strategy called “asset allocation,” whereby a combination of stocks and bonds maintains at least the real value of the fund (the original gift value plus inflation) and smoothes out the short term “roller coaster” ride which is associated with investing in the stock market.
This strategy leads to an increase of the grantmaking power of an endowment fund. In the case of Denise Beaulieu, her fund grew to $116,800 between 1983 and 2003. That means that the annual contribution from her fund to the Red Cross has also increased through the years. That is the power of an endowment.
The $77,000 was deposited with other contributions to the Foundation and invested by professional money managers using guidelines established by the Board of the Foundation. Each year the beneficiary of the fund, the Red Cross, gets 5% of the year-end fund balance.
To combat the impact of inflation, the endowment managers use a strategy called “asset allocation,” whereby a combination of stocks and bonds maintains at least the real value of the fund (the original gift value plus inflation) and smoothes out the short term “roller coaster” ride which is associated with investing in the stock market.
This strategy leads to an increase of the grantmaking power of an endowment fund. In the case of Denise Beaulieu, her fund grew to $116,800 between 1983 and 2003. That means that the annual contribution from her fund to the Red Cross has also increased through the years. That is the power of an endowment.