How Do Endowments Work | InFaith Community Foundation

How it Works

Support Your Mission Far Into the Future

By establishing an endowment fund at InFaith, your supporters can make outright gifts like cash, securities, real estate, or deferred gifts at death such as charitable life insurance, bequest, charitable trust or gift annuity. Then transfer new contributions to be held and invested by InFaith. Supporters may receive a charitable tax deduction for their gifts.

How Endowment Funds Work

Your organization can create an endowment fund for general purpose or for a special purpose, such as outreach efforts, building maintenance or education ministries. Once your organization's fund is established, it's available for your supporters to make outright gifts and/or gifts upon death.

The minimum to establish an endowment fund is $25,000.

Create a Fund  

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How it works illustration

Your Endowment Fund

Endowment fund assets are invested in a large, fully-diversified pool of low-cost institutional investments

Many churches and faith-based nonprofits recognize the need for perpetual income to support their mission in the future. An endowment fund at InFaith offers organizations a full range of charitable giving options to maximize your organization’s financial support.

Your Grants

Distributions can be requested any time, either in writing or online through your organization’s endowment fund advisor. Your endowment fund must maintain a minimum balance of $25,000. 


InFaith assesses an annual administrative fee of 1% of the endowment fund assets; endowment fund assets in excess of $1,000,000 are assessed a reduced fee. All investment fees and other direct costs attributable to the endowment fund, such as brokerage costs, are passed directly to the endowment fund. There are no fees or costs billed to the organization.

In addition, your endowment fund's assets are invested in a large, fully-diversified pool of low-cost institutional investments, with advisement by one of the nation's leading investment advisors.

InFaith offers four investment portfolio options; the mix of equities (stocks) and fixed income (bonds) varies within each portfolio (link to investment webpage). You may customize the allocation of your endowment fund’s investments or choose a specific portfolio. When choosing a portfolio for your endowment fund, consider these factors:

  • Short-term vs. long-term grantmaking plans;
  • Ability to tolerate short-term fluctuations in investment values for potentially greater growth over the long-term; and
  • Commitment to investing for mission.

Investment Report & Policies

Organizations typically request a percentage of the endowment fund value as a grant distribution once a year. A 5% rate is recommended for endowment funds invested in the Core Growth Portfolio. Grants of $100 or more can be requested at any time, providing a minimum balance of $25,000 is maintained. 

The endowment fund continues to offer support to the organization on a permanent basis.

Your organization determines the purpose of the endowment fund, and requests grant distributions for charitable purposes according to its wishes.

Your endowment fund committee has the option to skip grant distributions in any given year.

Your endowment fund committee is responsible for encouraging giving among membership, and InFaith is here to support your efforts in a variety of ways:

  • Design a customizable brochure tailored to your endowment fund. There is no charge for the design service and the organization is responsible for printing expenses;
  • Materials on charitable planning that can be included in newsletters, bulletins, or other publications; and
  • InFaith’s expert staff is available to work with members to help them set-up a gift to support your endowment fund.

Cash gifts of $1,000 or more, and gifts of non-cash assets, can be made directly to InFaith. Checks may be payable to InFaith Community Foundation for the benefit of (insert endowment fund name) and sent to InFaith. Cash gifts of less than $1,000 should be directed to your organization; you can hold these gifts and forward them to InFaith when the total reaches $1,000 or more. Individuals who wish to give anonymously may contact InFaith directly.