Dear FFTC, 

Charitable giving has been an important part of my life. I raised money for my local soup kitchen as a child– and volunteered every Thanksgiving. I gave to my church and favorite nonprofits throughout the years. I also opened a donor advised fund about a decade ago. 

I’m getting older and am starting to think about how I can still make an impact even after I’m gone. I have a few nonprofits that have been very important to me throughout my life, and I’m interested in learning how to support them well into the future. What are my options? – Leaving a Legacy

Dear Leaving a Legacy, 

Thank you for your generosity. It is inspiring to hear about your commitment to your community and the many ways you give your time and financial resources.

As you think about the future and your charitable legacy, you may want to consider a planned gift. A planned gift is a charitable donation that is documented during your lifetime but generally takes effect upon your passing. Just as you can bequeath your assets to family and friends, you may also name a charitable fund at Foundation For The Carolinas as a beneficiary.  

In addition, if supporting nonprofits in perpetuity is compelling, endowing an FFTC fund may be the perfect solution. The purpose of an endowment is to create a permanent source of funding for the recipient organization, providing dollars year after year.  

For a fund to exist in perpetuity, the principal (sometimes call the corpus) is generally preserved, and grants are typically distributed from what is called the spendable.*  

For example, if you create a $100,000 endowed fund, nonprofits will receive approximately $4,500 in grants each year (calculated by applying the 2022 spendable rate of 4.5% to the $100,000 corpus) while maintaining the fund’s ability to give in in the future. With the oversight of FFTC, your favorite nonprofits will be able to rely on an annual distribution from the fund.   

While many different types of funds can be endowed, if you would like to support specific nonprofits, endowed designated funds may be the best option. FFTC Designated Funds offer you and your family a simple and efficient solution to support and sustain the good work of the nonprofit organizations you designate. FFTC Endowed Designated Funds can be created with a minimum investment of $50,000.  

Contact Sara Piner, FFTC’s Vice President of Planned Giving, to explore planned giving options – and to discuss whether an endowment may be right for you. Sara can help you create a giving plan that fits your charitable goals and unique needs. 

*The annual spendable rate is determined based on several factors, including general economic conditions, effect of inflation or deflation, expected total return from income and appreciation of investments, among others.