Community Foundation of Anne Arundel County: Endowment fund a good way to help county, cut your tax burden
What if your charitable donations could provide for the needs of Anne Arundel County nonprofits forever? Donating to a local endowed fund is one way to assure that can happen. Endowments create a permanent source of capital to ensure financial support for charitable causes in perpetuity. In addition, endowments are invaluable in times of economic uncertainty, especially when other funding is no longer available.
By definition, endowments are a pool of assets invested in equities, bonds or other investment vehicles of which a percentage is withdrawn annually to assist charitable causes. Nonprofits use the annual investment income for programs, operations or other specified purposes. The principal (remaining assets and investment returns) is reserved in the endowment to provide for growth over time. Simply put, endowments are permanently restricted funds that allow charitable organizations such as the Community Foundation of Anne Arundel County and other nonprofits to continue to fulfill their missions in perpetuity.
Endowments have many benefits for both donors and charitable organizations. They can help create a lasting legacy while supporting charitable causes or community needs. They can provide an assurance that the programs or causes donors care about will survive. In addition, donating to an endowed fund can provide tax benefits for donors through Endow Maryland.
Source: Capital Gazette, written by Mary Spencer is the President and CEO at the Community Foundations of Anne Arundel County