QUASI- and FULL ENDOWMENTS
Gifts for immediate needs are vital and always welcome. But there is another way to support the society which, while providing for immediate needs, also insures its future well-being. An endowment fund is established with cash, securities or other assets through an outright gift, or through an estate gift. In most cases, unless otherwise instructed by the donor, the fund is permanently restricted in an invested account and only the income from the fund is spent, insuring that your gift will continue to make a difference in perpetuity.
Specifying the Purpose of Your Gift
When you establish an endowment at the American Czechoslovak Landmarks Trust Society, you decide how the funds will be used. For example, many donors choose to direct their endowments toward our projects within your State, or for our international arts exchange, sustain an on-going program, or provide a fund for changing areas of greatest need.
Others choose to endow their annual gift. As annual giving is the lifeblood of any non-profit organization, the ability to count on your gift each year makes it possible for us to carry out our mission. Through an endowment designated for the annual fund, you can continue to support the society in a meaningful and reliable way even after your death.
The purpose of your endowment gift is up to you, but we do request that you consult with us in advance to make certain we will be capable of meeting the conditions of your gift. Generally, we will prepare an “Endowment Agreement” between you and the ACzSLTS which specifies the terms of your gift. If you should change your mind about how you want the gift used, the agreement may be amended, but it does serve to insure your wishes are known and met, now and into the future.
Naming an Endowment Fund
In creating an endowment, you have the opportunity to attach your name or the name of something special to you to the project, program, scholarship, or other item to be funded. This enables us to honor and remember you or a loved one far into the future. Your gift becomes a lasting tribute and establishes a permanent link between the past and the future of the American Czechoslovak Landmarks Trust Society.
If you are considering a memorial gift, please let us know. We will be happy to work with you.
Minimum Endowment Amount
A $300 starter is enough to open a future endowment account. Depending on which format you prefer, you may want to build your own personal investment accounts before you give, or you may wish to give in small annual increments. Or, finally, you may wish to establish a full gift for a one-time large gift. Many donors want to start small, while some simply want to turn an old piece of property: a vehicle, an un-used real estate property, or other objects, into a memorial to a lost loved one. We are flexible in working with you.
3 Alternate Formats:
The Gradual Gift Option; the Personal Funding Account Option; and, the Full Gift Option
1. Gradual Gift Option
The Gradual Gift Option can begin with as little as a $300 account and lead to a permanent Endowment publicly displayed in the name you choose, such as a parent or other loved one. Once this account reaches a value of $10,000 through growth of the investment, re-investment of dividends, and continuing gradual additions from you, it begins to pay-out regular continuous annual amounts to fund the general programs of the American Czechoslovak Landmarks Trust, or may be directed by you to fund a specific ACzSLTS activity or project of your choosing.
2. Personal Funding Account
This $300 account can be used by you or your family as an emergency fund, a future college fund, or even a travel fund for your next trip with us to the castles or breweries of Czechoslovakia. Additions can then be periodically added to at your own pace, and will gradually earn extra dividends to grow into a $5,000 Endowment account. You can help it along by occasionally adding $50 additional gifts once a year or more.
We also offer the service of creating your own family investment account with $300 which remains in your name and is for you and your childrens’ future needs, with dividends paying over into a “future endowment account” of the ACzSLTS. In this way you strengthen your own family financial stability, while creating a small but continuous flow of dividends into what will become a full fledged Endowment Account dedicated to the specific American Czechoslovak Landmarks Trust project or goal you specify.
The Family Travel Endowment
Many families would like to get organized for a family trip to Europe. The Family Travel Account is an excellent tool to get you on your way. It only takes $250 to get the account started. Every journey begins with one small step.
A minimum gift of $5,000 is required to establish an endowment; however, this amount may be pledged and paid over a five-year period. Until the fund reaches $5,000, all earnings are reinvested in the fund and no awards will be made.
3. Full Gift Tax Deductible Endowment
A minimum gift of $5,000 is required to establish an endowment; however, this amount may be
How to Get Started
Once you have decided to create an endowment, you can achieve your goal through several methods – the choice is yours. Please contact the Gift and Endowment office at 405-225-1071. We can answer your questions and get you started – without obligation. Working with you and your financial advisers, we’ll help you determine if an endowment fund at the American Czechoslovak Landmarks Trust Society meets your philanthropic goals.
Frequently Asked Questions
Why are endowments important to the American Czechoslovak Landmarks Trust Society?
An endowment creates financial stability, allowing the Society to be less dependent on unpredictable sources of revenue. The base of resources from endowments represent a rich variety of activities such as international exchange for talented students and artists, support for distinguished and dedicated Trustees and Directors, our valuable working staff, genealogical research, children's programs, and protection of our landmark heritage.
What is an endowment?
An endowment is a long-term investment in the Society that provides benefits to artists, workers, and our many faceted programs year after year, generation after generation.
An endowment is a fund made up of gifts (including will bequests) that are subject to a donor requirement that corpus be maintained and invested to create a stream of income. Only a portion of the average investment earnings is expended to carry out the specified purpose of the endowment. To guard against the eroding consequences of inflation, the remaining portion of investment return is reinvested to help ensure that the endowment maintains its purchasing power over time to support future generations.
What is corpus?
Corpus typically refers to total donor gifts to an endowment.
What is endowment principal?
Sometimes the terms principal and corpus are used interchangeably, and on occasion, principal can be used to refer to corpus as well as excess returns not needed for spending and returned to principal.
What is the difference between a quasi endowment and a true endowment?
A true endowment is one created by an external donor that requires maintenance of the corpus. Only income earned from the true endowment is used for Society purposes. The corpus, or principal, is not spent but maintained as a continuous investment.
A quasi endowment is one that has been established by an internal board or administrative unit, or by an external donor for a temporary goal, that may be fully expended or unendowed by that internal board or administrative unit.
A Family Travel Account is a quasi-endowment. Your family may start with as little as $250 and add to the Travel Account month after month as you feel comfortable doing. Dividends are poured over into the Society for a tax deductible contribution and, once the Account reaches $5,000 it is available to fund your Society organized Tour to Europe. After you have enjoyed the trip and come home, you have the option to continue rebuilding the Account for your next trip or for your children’s future college, or whatever you wish. The principal is yours to use, the dividends build the heritage you want to protect: the American Czechoslovak heritage.
How are endowment investments managed at the Society?
The Society’s endowments consist of individual donor-restricted funds which are managed and controlled by the Society. Accounts are registered and follow the terms of a Donor Agreement, which may specify the ultimate purpose of a Quasi-Endowment, or may specify the particular Society program or purpose that the donor wishes to support.
What is the spending policy for endowments?
Spending Policy is set by the Capital Investment Policy of the Society, and reviewed quadrennially by the Board of Directors with Board of Trustee oversight.
What happens to any “excess returns” in the endowment?
Earnings beyond the amount needed for spending are referred to as “excess returns” and are added back to principal and reinvested in the long-term pool to promote growth and protect against inflation for future programs.
How soon will new endowments start to spend for their intended purposes?
True endowment agreements prohibit spending of corpus until a specified asset size is achieved. New True Endowments may begin spending only after the donor has deposited sufficient funds to reach the full planned endowment asset size. Once this size is achieved, dividends may be directed to the appropriate Society project or program, subject to the annual computation date for endowment spending budgets.
What is the minimum amount for establishment of an endowment?
The Society’s minimum to fund start a funding Account that will gradually grow into either a Quasi-Endowment or a full True Endowment is $250, with minimum additions of $50 per year.
The Society’s minimum to fully complete a Quasi-Endowment is $5,000 minimum.
The Society’s minimum to fully complete a full True Endowment is $15,000.
About Quasi- and Full Endowments