Karen: As we began making larger gifts, it became apparent to us, that if we were no longer here, these nonprofits we support would suffer. The loss of our annual gift might compromise the important work they do.

Bill: We learned that an endowment is a fund that provides a permanent source of ongoing income for nonprofits.

Karen: We have set up gifts in our will to go to the endowments of the charities we support. The amount of each gift in our will is 20 times the amount of our annual donation. When we pass away, these endowment gifts will produce permanent, ongoing income for each nonprofit that is equal to our current annual gift and grow over time.

Bill: For example, we give one nonprofit $2,500 each year. To replace this annual gift forever, we are donating $50,000 in our will to their endowment ($2,500 x 20 = $50,000). The charity’s endowment is invested and will continue to grow over time. It will distribute 5% of the fund’s value each year to the nonprofit ($50,000 x 5% = $2,500).

Karen: This is our way of leaving a lasting legacy and it gives us peace of mind that the charities we care about will not suffer from losing our donations.