What is the Catholic Foundation for Northwest Indiana?
The Catholic Foundation for Northwest Indiana, Inc. is a 501(c)(3) non-profit, independent corporation established in 2008 to assist individuals and organizations in providing lasting financial support to the Catholic religious, educational and charitable organizations of Northwest Indiana.
What is the purpose of the Catholic Foundation?
The Catholic Foundation provides the means for individuals and organizations to give an endowed gift that will support their chosen diocesan parish, school, or other diocesan entities or ministries for generations to come.
Who manages the Catholic Foundation?
The Catholic Foundation’s Board of Directors governs all operations and actions by the Catholic Foundation. The Catholic Foundation’s Executive Director provides direction, planning and operational support.
Are the Catholic Foundation assets separate from Diocesan funds?
Yes. The Catholic Foundation is a separately incorporated 501(c)(3) organization. By law, no one can appropriate money from the Catholic Foundation for any purpose other than that for which it is specified.
What is the Catholic Foundation’s investment strategy?
The Catholic Foundation’s investment strategy is focused on total return to preserve and enhance the purchasing power of each endowment and to maintain a consistent distribution policy so that endowment beneficiaries can prudently utilize their distributions.
What types of gifts are accepted by the Foundation?
Gifts may be given in the form of immediate gifts such as cash, real estate, stocks and bonds – or in the form of future gifts through wills and bequests or as a designated beneficiary of a life insurance plan, retirement plan or IRA.
What is an endowment?
An endowment is a fund that is made up of gifts and bequests that has been created to be a continual source of income for a particular organization or mission. All donations are permanently invested. Investment earnings are used to grow the fund and to provide the beneficiary with ongoing financial support.
What is the benefit of establishing an endowment rather than giving directly to my parish, school, or ministry?
An endowment stays permanently invested. An outright gift of cash is depleted over time. An endowed gift is administered based upon an irrevocable legal agreement. You can be assured that your donation will only be used as you have specified. There is no guarantee that an outright gift of cash will be used as you intended.
How much is needed to establish an endowment?
You can establish a new endowment with an initial gift of $5,000 – if you intend for that endowment to receive additional contributions. Any gift amount can be added to an existing endowment. If you want to establish an endowment with the expectation that there will be no additional contributions, then your gift must be a minimum of $10,000.
What is the current endowment distribution rate?
The current annual distribution rate is 5% of average market value. Note: the distribution rate is the amount available annually to the endowment’s beneficiary. The distribution rate is not the annual rate of investment return. All investment returns remain in the endowment to assist in growing the endowment.
Does the Catholic Foundation charge a fee for managing endowments?
Yes, the Catholic Foundation’s fee for the management and administration of an endowment is based upon a percentage of the fund balance as determined by the Catholic Foundation’s Board of Directors. Currently, the management fee is set at 1%.
Are contributions to the Catholic Foundation tax deductible?
Yes, to the extent allowable under IRS regulations. The Catholic Foundation is classified as a 501(c)(3) tax exempt organization. Contact your tax advisor or accountant regarding your particular tax benefit circumstances.