Page 13 - FoC 2024 Summer Newsletter
P. 13

Securing Our Future


                           Estate Gifts, Named Endowments, Reserves






      How do we carry on our legacy of lifting up the least of our brothers and sisters according to Christ’s teaching in the Gospel
      of Matthew 25?  Over the past few years, we have succeeded in continuing and advancing this legacy through community
      development in the outlying community of Cambio Puente. We are deep into identifying additional outlying communities with
      needs we can meet and problems we can solve. As we strive toward a bright, hopeful, sustainable future of transforming lives,
      it will be more attainable with support from planned gifts, endowment funds and an enhanced reserve fund.

      For many people, the largest donation they will ever give is through their estate or with a planned gift. We are grateful and
      encouraged that dozens of our donors have shared with us that we are included in their estate plans. This helps our planning.
      They have supported us for decades and want their impact to continue after their death.

      Father Al Bitz, longtime supporter and Board Member included us with a percent of his estate. Current Board Member, Bill
      Seiler, shared that he has included us in his will with a generous, firm dollar gift for our new endowment fund to transform lives
      in perpetuity. He has witnessed the impact of our work and wants to help it continue long into the future.

                                        Language to do so can be as simple as,

               “I devise and bequest (percentage of my estate or residue, specific dollar amount, or specific property) to
                                     Friends of Chimbote, PO Box 717, West Fargo, ND  58078
                                          Federal Identification Number: 45-045-3441”
      Additional  planned  gifts  include  charitable  remainder  trusts,  charitable  gift  annuities  or  charitable  remainder  trusts  but
      detailing them is beyond the scope of this newsletter.  Donors interested in these opportunities should consult their tax or
      financial advisors to discuss these vehicles further.
      Leaving a bequest to a charity in one’s will or naming a charity as a beneficiary of a retirement plan, financial accounts, DAFs,
      or life insurance can not only reduce estate taxes, but they will also provide a legacy.
      As we shared in previous newsletters, we have created a permanent, charitable endowment fund. This fund protects the
      original gift and lets it grow with only a percent of the invested earnings being used each year. Our current policy is to use
      5% of a five-year rolling average of the value of the endowment. Universities and large non-profits have billions of dollars in
      endowments from donations and estate gifts from alumni and supporters. We believe transforming the lives of the poor, in
      perpetuity, is one of the most beautiful purposes for endowed funds.

      Donations of any value can be made to the endowment. The minimum amount to establish a named, endowed fund is $20,000.
      This amount can be pledged and paid over a period of up to 4 years. We currently have one named fund and a second one
      partially funded. North Dakota donors realize an additional benefit beyond a charitable deduction. Gifts of $5,000 and above
      to our endowment qualify for a state tax credit of 40%. This reduces the actual cost of the gift to $1,500-$2,000 depending on
      the donor’s tax bracket.

      Friends of Chimbote currently has a reserve fund, invested in Vanguard, which helps us balance our uneven cash flows and
      can provide revenue from the earnings. It
      is recommended that non-profits maintain    For more information
      a  reserve  fund  to  cover  12-18  months  of   or if you have questions
      operating expenses to safeguard operations
      during  disruptions  like the pandemic.  Our   please contact:
      current reserve fund could cover less than 7
      months of operations.                       Todd Mickelson

      Our goal is to increase this fund to        toddm@friendsofchimbote.org
      12 months of coverage within a              701-364-0162
      few years.

      friendsofchimbote.org                                                                                    PAGE 13
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