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How to make your gift last forever.
The Sault College Foundation is diligently working on projects and
programs that will directly impact students at the Sault College
of Applied Arts and Technology. There are so many ways you can contribute;
donations to scholarships and bursaries, in-kind gifts of equipment
to programs, memoriam funds and endowments to worthy departments.
You can contact us directly anytime to establish a bursary in your
name – or in the name of someone you’d like to honor.
Over the past several years, many charitable organizations have
begun campaigns to have their donors "endow" their annual
gifts. Simply stated, this involves leaving a gift in your will
of an amount whose investments can create a gift for current use
each year, forever.
It works in this manner: a charitable organization will take the
endowed gift amount, spend a fixed amount of the gift annually,
(this is determined by the organization's endowment spending policy),
and reinvest the difference to both offset inflation as well as
to provide income to supplement their annual revenues and gifts.
Take, for example, an annual gift of $1500. How much would it
take to endow that gift so that a charitable organization could
receive that amount indefinitely? If, say, the organization's policy
for spending endowment income is 5% annually, simply divide the
annual gift amount, $1500, by the amount called for in the spending
policy, in this case 5%, and you get $30,000. Thus, making an endowment
of $30,000 can continue the $1500 annual gift indefinitely.
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$100 |
$2,000 |
$500 |
$10,000 |
$1000 |
$20,000 |
$1500 |
$30,000 |
Applying the above principle to any given situation
we see that, at a 5% endowment spending level, twenty times an annual
gift amount equals a perpetual gift endowment.
The added benefit is that the spending policy of the endowment
allows the asset value and thus the annual income to grow to offset
inflation. Because of this increase, many people can actually increase
their gifts to their favourite charitable organization over the years.
Setting up an endowment could be the most farsighted and enduring
act of your lifetime!
What it means to you - it's a way for you to play a special part
in perpetuating a cause that means a lot to you. What it means to
the charitable organization - it provides a steady dependable source
of income.
We will be happy to discuss this plan further with you, your tax
advisor or attorney. Please contact us today at:
443 Northern Ave.
Sault Ste. Marie, Ont.
P6A 5L3
t : 705.759.2554 ext.#2446
f: 705.759.1319
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