The Catholic Foundation - Endowment Account



	How to Open an Endowment Account There are two ways that accounts are established in The Catholic Foundation: 1) an individual donor leaves a bequest, a charitable annuity remainder, life insurance or some other form of a planned gift and designates the gift as an endowment to perpetually benefit a parish or diocesan entity; 2) leadership from a parish or diocesan entity decides to establish an endowment account to accomplish a specific purpose. In the case of an individual leaving an endowment to a specific parish or diocesan entity which does not have an existing account with The Catholic Foundation, the procedures listed below are applicable except for the initial decision to establish an account and for those aspects relative to the intentions of the donor.
The following steps outline the process for voluntarily establishing an account in The Catholic Foundation: 1. Identify the Need to Create an Endowment Parish/Diocesan leaders understand that many donors wish to endow their cherished charity — their church — but do not know how to go about doing that. Many other parish leaders see the necessity for having a revenue source that will benefit the parish or diocesan entity into the future. These leaders make a conscious choice to use memorial monies, bequests or other revenues to establish an endowment account. Pastors and Diocesan Directors who wish to establish endowment accounts must consult with their Finance Council or appropriate supervisory authority before action can be taken. 2. Define a Purpose Leaders need to define for each account in The Catholic Foundation a clear purpose for which the earnings will be used into the future. While the purpose should be clear, it should not be overly restrictive. Some examples are for: The Mission and Ministries of a Specific Parish; Parish Catholic Education; Parish Cemetery; Capital Improvements; etc. 3. Decide the Investment Objective for the Account The Catholic Foundation offers three Investment Funds. If a participant's primary objective is for dependable income return for current operational budget needs, then the Income Fund is chosen. If a participant's objective is a combination of growth and modest income, the Balanced Fund is chosen. If a participant's objective is long-term growth with no immediate need for income and has long-term strategy for maximum growth, then the Growth Fund is selected. 4. Determine the Initial Amount to be Deposited The Catholic Foundation accepts checks payable to the "Catholic Foundation." In the memo section identify the name of the account. Securities may be directly transferred to The Catholic Foundation. Specific instructions are necessary for each type of security transfer. 5. Complete the Necessary Documents The process begins with the Application Form. An account will be initially established with the acceptance of the Application Form and the transferred assets. Formal establishment of the Catholic Foundation account will occur when the "Participant Agreement" documents have appropriate signatures. Foundation officials, including the Bishop, will sign. Participant signatures will include the Pastor or Diocesan Department Director and a person who has official responsibility for the financial affairs of the participating entity. (This latter signature is necessary to document that official consultation has occurred.) One copy of the documents will be placed in the Diocesan Archives; one will be returned to the participant; and two copies will be retained in The Catholic Foundation. Application for Endowment Account