Creating Endowments
Investing for Future Generations
Today, the Franciscan Renewal Center is one of the country’s preeminent spiritual centers. As our revenues level and the costs of operations rise, private support becomes critical to the Casa’s growth and ability to maintain its standards of excellence in the spiritual community. The generosity of our friends and community members has nourished the Casa since 1951 and made possible achievements in spiritual education, prayer and contemplation.
Many of these community members and friends realize that the Franciscan Renewal Center’s strength in the future depends on building a foundation through endowment today. Thank you for your consideration and we welcome your additional questions in our Development Office at 480-948-7460 or 800-356-3247, extension 161.
Skip down to your question:
Can an endowed gift be directed to a specific area?
What are the types of endowments?
What types of assets can be used to fund an endowed gift?
Are there any tax savings from an endowed gift?
What are some of the Franciscan Renewal Center’s special gift arrangements?
Are there advantages to funding an endowed gift with appreciate securities?
Can an endowment be part of a will or other estate plan?
Can an endowed gift be funded over a period of time?
Can real estate be used to fund a gift?
How can I obtain more information?
What is an endowed gift?
An endowed gift is a gift that the Franciscan Renewal Center holds in perpetuity. This gift is invested, and only a portion of its average annual investment return is used for operations or purposes specified by the donor. To guard against the eroding consequences of inflation, the remaining investment return is added to the principal. The goal is to ensure that the principal maintains its value over time. Thus, a donor who creates an endowed gift today can be confident that it will grow and continue to support the Franciscan Renewal Center in the years to come.
Can an endowed gift be directed to a specific area?
As with any gift to the Franciscan Renewal Center, an endowed gift offers the donor the opportunity to have their names (or the name of a loved one) lined to an area of the Casa in which they have a special interest. Each donor’s gift is a unique expression of the causes and concerns that matter most in his or her life. Some donors create unrestricted endowments, recognizing that the needs and challenges of the future will differ from those of today. These endowments, our primary endowment funds, result in distributions to assist with the ongoing operations of the Casa. These gifts provide flexibility to meet the changing needs of the Casa over a longer period of time.
Other donors choose to direct their gifts to programs of special concern to them, knowing that these additional funds provide an opportunity for those programs to grow and excel. Some donors choose to assist the friars’ long-term education or financial resource fund. There are opportunities to establish endowments to meet the scholarship needs of program participants who may be unable to afford the fee for programs. It is up to the donor to decide the greatest need to fulfill when establishing an endowment with the Casa.
How are endowments managed?
The Franciscan Renewal Center endowment consists of three diversified funding pools, which are separately managed by independent investment managers. Through these investment managers, the Casa strives to preserve both capital and the purchasing power of each of the endowments. Their approaches vary, however, in terms of investment strategy, spending policy, performance benchmarks, and report. Despite a sluggish economic and business environment, and thanks primarily to successful portfolio management, generous benefactors, and additions through annual fundraising events, the Casa’s endowment continues to grow.
Among other important efforts, endowments support all ministerial efforts, including liturgy, programs, conferences, counseling, the work of the friars, general administration and grounds and maintenance upkeep. Endowments are critical to the Casa’s goal of meeting the spiritual needs of the local and national community and the physical requirements to upkeep our grounds and buildings. Without this support, our ability to offer affordable counseling or programs to individuals and groups would cease. Further, certain maintenance would be sacrificed and we may require a reduction in both friar and lay staff members.
What are the types of endowments?
The following categories are examples of the types of endowments a donor may create:
General Endowment
This endowment supports general operations of the Casa and includes all ministerial work performed by the Casa. A small percentage of the three-year rolling average balance of the general endowment is provided to operations each year. This method ensures the permanent nature of the principal or corpus of the endowment while providing a portion of the annual income from the investments to operations.
Formation Endowment
This endowment supports the formation meetings of the friars once the novitiates receive their temporary or simple vows. This annual or bi-annual training program here at the Casa assists these men in their journey of discernment in the Franciscan process.
Scholarship Endowment
Scholarships allow the Casa to meet one of its highest obligations: to attract and provide spiritual education opportunities for numerous students who may be unable to participate with the programs. Endowed scholarships are an ongoing reminder of the important role generous donors play in the lives of successive generations of Casa program participants. Spiritually needy and financially deserving applicants, who otherwise may not be able to otherwise participate in programs, often find that a scholarship can make all the difference in their lives, both on earth and for all eternity.
A scholarship may be established in honor or memory of someone important in a donor’s life.
Endowed Speakers Funds
An endowed speaker or lecture series enables the Casa to bring distinguished Franciscan or other spiritual speakers to the Casa, giving community members and program participants the opportunity to interact with important spiritual leaders of the day, scholars and professionals in fields of Franciscan interest. Guest lecturers not only bring a new dimension to the spiritual tapestry of the Casa but also frequently provide stimulus for further evangelization throughout the community.
Endowed Discretionary Funds (Executive Director’s Fund)
Endowed discretionary funds allow the Casa to respond to unexpected opportunities and provide overall flexibility to the Casa’s programs and needs. Whether specified for use under the direction of the Executive Director or Provincial Management, such funds ensure that the Casa will meet the challenges of today and tomorrow.
What types of assets can be used to fund an endowed gift?
A gift of cash is the easiest and most direct way to create an endowment with the Franciscan Renewal Center. Endowments also can be established with gifts of appreciated securities that are publicly traded (including mutual funds) and, in many cases, stock from closely-held corporations. Donors have funded endowments with gifts of real estate; it is also possible for a donor to create an endowment through a future gift from his or her estate.
Are there any tax savings from an endowed gift?
A gift to create or add to an existing endowment offers benefits to the donor in the form of advantageous tax treatment under both state and federal laws. Depending on the type of asset given and the type of gift arrangement selected, it is possible for a donor to enjoy savings on income taxes (including capital gain) and even transfer taxes. The income tax savings can be immediate.
What are some of the Franciscan Renewal Center’s special gift arrangements?
In addition to creating endowed funds through outright gifts, the Franciscan Renewal Center offers a full range of planned gift opportunities. Some of these gifts are made with the cooperation of the Catholic Community Foundation into funds specifically assigned to the Franciscan Renewal Center. These opportunities include bequests, charitable remainder trusts, charitable gift annuities, the Casa pooled income fund, remainder interests and charitable lead trusts. These gift plans allow donors to enjoy tax savings while turning appreciated assets into income for themselves or others.
The appropriate arrangement for each donor varies according to the donor’s age, the type of assets being used to fund the endowment and the donor’s own financial needs and goals. Planned giving professionals are available through the Catholic Community Foundation of Phoenix to discuss the many methods and benefits of creating an endowment for the benefit of the Casa and to help donors and their advisors select the gift arrangements that best suit their needs.
Are there advantages to funding an endowed gift with appreciate securities?
Some donors have marketable securities that have grown substantially in value and are subject to capital gain taxes if sold. The tax laws make it possible to create an endowment with a gift of appreciated securities at a remarkably low after-tax cost. Such a gift generally qualifies the donor for an income tax charitable deduction equal to the value of the securities given. The donor may also avoid the long-term capital gain tax on the unrealized capital gain.
Can an endowment be part of a will or other wstate plan?
Donors can establish endowment bequests through their wills or living trusts. A donor might choose to create an endowment by making the Franciscan Renewal Center the beneficiary of the final distribution from his or her retirement plan. Doing so can help the donor minimize or avoid the extreme taxes often imposed on such assets. A member of the planned giving team with the Franciscan Renewal Center or the Catholic Community Foundation can provide donors and their advisors with the appropriate bequest language.
Can an endowed gift be funded over a period of time?
Endowed gifts to the Franciscan Renewal Center can be pledged over a period of up to five years. Some individuals have established endowments using planned gift arrangements. In fact, many have found that they are able to create a more significant endowment and, in some cases, augment their current income when they take advantage of one of the Franciscan Renewal Center's special gift plans facilitated by the Catholic Community Foundation of Phoenix.
Can real estate be used to fund a gift?
A gift of personal residence, farm, vacation home, or other real estate can be used to fund a future endowment, as long as the gift is in compliance with the Franciscan Renewal Center Gift Acceptance Policy. Such a gift also allows the donor to enjoy significant tax benefits. With a gift of real estate, the donor may receive an immediate income tax charitable deduction and may avoid the long-term capital gain on the unrealized capital gain.
How can I obtain more information?
To explore the opportunities and rewards of creating an endowment for the benefit of the Franciscan Renewal Center, please contact the Development Office. The staff will assist in understanding each donor’s individual needs and interests. As required, the donor will work with the staff of the Catholic Community Foundation, who are experienced in planning gifts that meet these needs. They can provide detailed information about the Franciscan Renewal Center’s endowment guidelines, life-income gift arrangements, funding options and endowments to specific areas or programs.
This information on this site is presented in summary form. ALL DONORS MUST CONSULT WITH AND RELY EXCLUSIVELY ON THEIR OWN ATTORNEYS OR OTHER FINANCIAL ADVISORS FOR TAX AND LEGAL ADVICE.
Contact the Casa Development Office at 480-948-7460 or 800-356-3247, ext. 161 to support The Franciscan Renewal Center through planned giving, or for more information on a broad range of giving opportunities.
Online Giving
We can accept donations through our web site thanks to PayPal (credit card payments only).
Keep in Touch
Catholics Can Come Home
If you feel alienated, have been hurt by the Church or are drifting away, let's talk.
