The power of endowments

What if we could predict what the future holds? How would we change where, and how, we use our financial resources?

While we will likely never be able to accurately predict future events, we do have opportunities to leverage our current knowledge and resources to be better prepared to face the challenges of the future. This is particularly important for communities. Our ability to leverage local resources in moments of opportunity and crisis will significantly impact the future of our community.

Endowments allow gifts to continue on in perpetuity, providing a financial safety net for the community. They are pooled and invested to achieve long-term growth by balancing principal protection with distributions to support local non-profit organizations. At community foundations, endowed gifts last forever. Here in Linn County, we've seen firsthand the significance that endowments can have.

When William B. Quarton passed away in 2007, the Cedar Rapids-based philanthropist left the Greater Cedar Rapids Community Foundation a $35 million planned gift to benefit the community in perpetuity. A significant portion of Quarton's gift established an unrestricted endowment. At the time, no one could have predicted the Flood of 2008. The unrestricted income from Mr. Quarton's endowment became instrumental in rebuilding our community after that disaster. Today, his gift helps our community grow and adapt by providing over $1 million annually in support to non-profit organizations in Linn County. Endowments do not need to be in the millions to be impactful.

Endowments of all sizes help provide support and flexibility for a variety of organizations. Unrestricted endowments through the Community Foundation allow Linn County families the opportunity to take advantage of the statewide Endow Iowa Tax Credit Program without deciding today where their gifts will be most needed in the future.

Without being designated for a specific organization, these funds are highly adaptable and will be available in the future to seize opportunities or respond to a community crisis. For example, in 1993, an endowed fund was established at the Community Foundation. Since then, the endowment has granted out 150 percent of the original gift amount and the principal has grown!

Funding from this gift has helped fund important work in the community. While the holders of the fund have since passed away, their legacy continues on in supporting the community they loved through their endowed gift. As a professional adviser with a commitment to this community,

I encourage individuals and organizations to consider the power of endowments when planning for their financial future. Endowments are an opportunity for us all to provide a gift to the future of Linn County - a gift that gives 'forever.”

' Kevin Welu is Managing Partner at TrueNorth Wealth Management and board chairman of the Greater Cedar Rapids Community Foundation.