Endowment Challenge Goal

A participating agency must select an endowment goal (ranging from $10,000 to $75,000), which represents the amount it commits to raise over the three-year challenge period.  The agency must meet its goal by December 31, 2007 in order to receive matching funds.  If the agency does not meet its goal, it will still be able to establish an agency endowment fund with the Jewish Community Foundation, but those funds will not be matched.

The Match

Any new gifts of $1,000 and more designated by a donor to the Endowment Challenge will count toward the endowment goal.  Qualified gifts, including cash, marketable securities and other assets that can be readily sold and converted to cash, will be accepted if they comply with the Jewish Community Foundation’s current gift acceptance policies.  All pledges must be paid by December 31, 2007 in order to qualify for the matching grant.

Agency funds, bequests, unsolicited trust distributions and funds not specifically designated for the Endowment Challenge will not count towards the match. 

Contributions for the Endowment Challenge

Gifts may be made payable and sent directly to the Jewish Community Foundation at 333 Bloomfield Avenue, West Hartford, CT 06117.  The Endowment Challenge Donor Form will serve as a guide.  Individuals who contribute $5,000 and more will have the option of making gifts to a fund carrying the donor’s name that is designated for an agency’s benefit, or to a permanent endowment fund in an agency’s name.  Gifts to individually named funds will still count toward the agency’s endowment goal.

Fund Management

Designated agency endowment funds will be invested in accordance with the Jewish Community Foundation’s current investment policies.  The Investment Committee follows a disciplined approach of asset allocation and diversification.  While investment performance will fluctuate with changing market conditions, it is expected that the funds will grow over the long-term.

Annual distributions to an agency will be in the amount of 4 percent of the average market value of the fund balance over the previous 16 quarters to ensure that both the fund balance and distributions continue to grow with inflation.  Certain minimums and maximums apply to smoothen payouts over time.  Designated funds and agency endowment funds currently are charged one percent (1%) of the fund’s market value each year for administrative expenses.

Access to Endowment Principal

The intent of the Endowment Challenge is to create permanent charitable endowment funds.  All contributors and matching funds will be designated as permanent endowment, not to be invaded.  The fund’s net income, determined in accordance with the Foundation spending policy, will be paid to the agency so long as it exists and offers programs for the charitable purposes described in its application.