Endowment Fund
The Dorothy May Florance Endowed Fund for the Midland County Habitat for Humanity is a fund designated at the Midland Area Community Foundation. It is designated to support the mission and activities of Midland County Habitat for Humanity and its efforts to support building affordable housing for those in need in Midland County and to raise awareness for the issue of shelter.
An endowment fund, quite simply, is money set aside (invested) to earn revenue to fund some type of charitable activity. Unlike a typical investment fund, the beneficiary of an endowment fund is a nonprofit organization instead of individual investors.
The principal value of the endowment fund is kept intact, while the investment earnings can be distributable dollars used for charitable grants to nonprofits. Thus, an endowment fund can be held permanently, allowing donors to support causes they care about in perpetuity.
Benefits of an Endowment Fund
(An excerpt from Diana Newman’s book Nonprofit Essentials, Building Endowment)
- Creates an ongoing source of income - Because a permanent endowment is an invested pool of money that provides a reliable source of income in perpetuity, the organization can count on annual distributions for its charitable work.
- Enhances stability - A well-managed endowment sends a message of planned long-term stability, fiscal responsibility, and financial viability. It enhances the organization’s prestige and credibility.
- Relieves pressure on the annual fund - Annual fund goals tend to rise right along with the cost of providing services and operating the organization, but the ability of the annual fund to meet increasing demand is not limitless. An endowment can provide annual support for the organization’s operating budget.
- Provides independence - Endowment contributions designated for specific purposes can provide a measure of independence from economic, governmental, and political forces.
A gift to our endowed fund creates a source of charitable dollars that will be available every year, forever, so you can support our mission for years to come.
Contact us to discuss donating to our endowment fund
Amanda King, Impact Manager
king@midlandhabitat.org or 989-496-0900