An Endowment Fund is an enduring asset designed to last in perpetuity, providing the advantage of long-term sustainable revenue benefiting one or more nonprofit organizations. When a donor sets up an endowment fund, the original gift amount is permanently restricted by the donor, and as such cannot be expended for operational support, programs, or grant awards. The endowment assets are strategically invested, and only the investment earnings may be spent.

Endowment funds are required by law to be managed in a prudent manner, ensuring that investment assets are well-diversified and professionally managed. Endowment investments are designed to produce sufficient income to grow the endowment principal against inflation and also provide a targeted annualized income that is available for grantmaking or for operational support for a charitable organization.

Unlike donations that must be raised year after year, initiating and growing an endowment fund has the advantage of securing a permanent asset that provides ongoing long-term earnings for the charitable institution. Those earnings may be designated by the donor for specific programs or undesignated so that earnings may be used for general operating expenses. A well-managed endowment provides a stable and perpetual source of income.

To set up a meeting with SDSCF executives to discuss the benefits of establishing an endowment fund at the San Diego Seniors Community Foundation, please contact our CFO at jerry@sdscf.org or our CEO at rich@sdscf.org.

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