Frequently Asked Questions (FAQs)
What is a Permanent Endowment?
A Permanent Endowment is a type of endowed fund where the principal, or corpus, of the fund remains invested in perpetuity. (Think of a savings account that can never be spent.) The principal is the amount of cash or other donated assets contributed by one or more donors to initiate an endowment. This amount and additional contributions remain intact. Only a percentage of the annual investment income as determined by the Independent Catholic Foundation’s Board of Trustees will be awarded to one or more beneficiaries designated by the endowment agreement.
What is the minimum contribution required to create a Permanent Endowment with the Independent Catholic Foundation?
An individual or family can create a Permanent Endowment, named in honor or memory of loved ones, with $10,000 payable over a three-year term. A contribution of any amount can be made at any time into existing endowments.
How does the Independent Catholic Foundation invest the principal of a Permanent Endowment?
The Finance and Investment Committee of the Foundation’s Board of Trustees is responsible for ensuring that our investment portfolio adheres to our Investment Policy Statement which has been developed in conjunction with socially responsible investment guidelines issued by the U.S. Conference of Catholic Bishops. Our endowments are held by Bank of New York Mellon and managed by
Christian Brothers Investment Services with guidance from Cornerstone Advisors. Our portfolio consists of 60% equities and 40% fixed-income assets using a perpetual investment horizon with a desired rate of return of at least 6.6%.
Is there a fee to administer an Endowment with the Independent Catholic Foundation?
Our annual administration fee of 1% is applied at the rate of 0.25% quarterly.
Is there a complete list of the Foundation’s Permanent Endowments?
Yes, we regularly update our Permanent Endowments web page.
Is the Foundation governed by any Catholic diocese?
No, the Independent Catholic Foundation is a self-governed, nonprofit corporation with no oversight by any U.S. Catholic diocese.
How does the Diocese of Altoona-Johnstown benefit from the Independent Catholic Foundation?
The Diocese, its parishes, cemeteries, schools, ministries and programs, as well as other Catholic organizations and religious orders, are beneficiaries of many of our 250+ permanent endowments. As we expand our marketing efforts, we hope that more Catholics will include their most cherished Catholic ministries in their estate plans.
Can I create a Permanent Endowment for a Catholic organization beyond the boundaries of the Diocese of Altoona-Johnstown?
Yes, we currently support several Catholic organizations elsewhere in Pennsylvania and New York. Scholarships awarded to college students registered at local Catholic parishes are distributed throughout the U.S.