Establishing Your Endowed Fund: Frequently Asked Questions

In the Greater Manhattan Community Foundation (GMCF) service area, encompassing Manhattan and our partner communities in Kansas, many of our citizens actively serve on the boards of directors of charitable organizations. If you’ve dedicated your time to a charity’s board (or multiple!), you're likely well-versed in the concept of an endowment. It's a financial mechanism many charitable organizations employ to ensure their missions remain resilient during economic downturns and times of heightened community need.

However, you might be less acquainted with the reasons why you or your family should consider establishing an endowment to support the ongoing needs of your community. Often, with guidance from our team, individuals and families discover that establishing a new endowed fund is an effective way to perpetually fund their charitable interests.

Below are answers to a few frequently asked questions that may help you consider establishing an endowed fund.

Why should I consider establishing an endowed fund?

Establishing an endowed fund offers a lasting way to support causes you care about in your community. It ensures your philanthropic impact continues, providing sustained support even during economic uncertainties.

How does an endowed fund work?

An endowed fund is invested by GMCF, with a portion of the investment income distributed annually to support charitable causes. The principle remains intact, allowing the fund to grow over time and provide ongoing support.

What level of gift is required to establish an endowment?

The initial gift to establish endowed funds at GMCF:

• To open an endowed fund requires ten thousand dollars.
• To open an endowed scholarship fund requires twenty-five thousand dollars.

Gifts of cash or the equivalent asset of appreciated stock, real estate, gift of grain, etc. can be transferred to establish an endowed fund. You’ll be eligible for tax saving benefits in the year you make the transfer to establish the fund. You can make future transfers to your endowment fund each year, too, to achieve your tax and estate planning goals.

How can I stay involved with my endowed fund after it’s established?

You can name your endowed fund and specify the causes it supports. GMCF keeps you informed about the impact of your fund through regular updates, and you can remain involved by attending events and engaging with the community.

Who decides how the distributions from my endowed fund are allocated? While you have the freedom to specify the causes your endowed fund supports, GMCF's experienced team manages the fund's investments and recommends distributions based on your charitable goals. Our independent board of directors ensures these distributions align with your intentions.

These are just a few considerations to keep in mind as you explore the possibility of establishing an endowed fund with GMCF. We're here to guide you through the process and help you create a lasting impact on the causes you care about in our community.