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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.

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