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Confirmed in Compliance with National Standards for U.S. Community Foundations |
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Give the gift that lasts forever - A Permanent Fund. What is a Permanent Fund? Quite simply, a sum of money is given by the donor to The Foundation as a permanent fund. The Foundation assures the donor in a written agreement that the principal of the fund will never be spent. The Foundation will invest and manage the monies. Annually, a portion of the earnings (interest) becomes available and is used according to the donor’s wishes as specified in the agreement. Advantages to the Donor In addition to the tax advantages, the donor experiences the joy of giving and having an opportunity to continue giving beyond a lifetime. The donor may benefit a specific non-profit or agency and even honor a relative or special friend with the same fund. How Does It Work? The idea of a permanent fund is best illustrated by using an example. Bill wishes to memorialize his mother who served on the local board of directors of a children’s homeless shelter. He remembers his mom, Ruth, loved her work with the children. Therefore, Bill creates a permanent fund known as the Ruth Memorial Fund. Bill signs an agreement stating that a portion of the earnings, annually and forever, will be designated for the children’s homeless shelter. Although Bill does not have a great deal of money, he gives an annual tax-deductible gift of $1,000 for five years totaling $5,000. After the permanent fund has been invested, the annual distributable income will be directed to the children's homeless shelter in Ruth’s memory. Criteria for Creating a Permanent Fund A permanent fund is created with a minimum of $5,000; however, the tax-deductible contributions may be made $1,000 annually for five years. An agreement will be signed by both the donor and a representative of The Community Foundation to insure that the earnings will be distributed annually as determined by the donor. There is no maximum amount of the principal, and contributions may be added to the permanent fund at any time. The principal of the fund will NEVER be used. |
| The Community Foundation of Southern New Mexico is recognized by the IRS as a 501 (c) (3) public charity. © Copyright 2004 - by the Community Foundation of Southern New Mexico. Privacy statement. Site design and hosting by Polar Bear Media.  |
