Ensuring Sustainability While Connecting the Community

Spring is fast approaching, and as nature flourishes, we are reminded of sustainability. This concept is not limited to the environment but is also essential in the non-profit landscape. Vital for a thriving future, endowments form the cornerstone of non-profit sustainability.

Endowments are a pool of money invested to generate income for the organization. This income can support the organization’s programs, operations, and other initiatives. Having a stable source of income helps non-profits focus on their mission and lessens the worry about financial sustainability.

An endowment fund offers extensive benefits to non-profits:

  1. It provides a stable income source, promoting sustainability and mission fulfillment.
  2. It enables non-profits to maintain independence by reducing reliance on government or corporate funding.
  3. It can be customized to address the unique sustainability needs of each organization.
  4. Endowments encourage strategic planning beyond immediate needs.
  5. It provides a sense of legacy that attracts donors because they know their gift will generate income indefinitely.
  6. It enhances the organization’s credibility and bolsters community support.

Establishing an endowment at the Community Foundation of Lorain County is a powerful tool for ensuring the long-term sustainability of any non-profit organization. Our team has extensive experience in managing the investment assets of multiple endowment funds, with well-diversified pools of professionally managed investments overseen by an independent investment committee. This removes the burden of the non-profit trying to find and retain their own qualified outside investment advisors to help ensure that investment assets are diversified with acceptable market risk and return levels.

If you’re involved in a non-profit, consider focusing on endowments as Connect to a Cause registration opens from March 1st to March 31st. This community-wide giving day supports Lorain County non-profits. At least 25% of the organization’s fundraising proceeds from Connect to a Cause will remain in each organization’s endowment fund. The remaining donations will be given directly to the organization to support its mission.

Since 2020, this remarkable event has showcased the strength of our community when we unite for causes that matter. The generosity and commitment of the donor community have generated over $1M to date, and we are excited to achieve even greater milestones together in 2024.

If you would like to take this golden opportunity to kick off a new endowment or enhance an existing one at Community Foundation of Lorain County, register for our Connect to a Cause Kick-Off Meeting on March 1st at 10 am Avon Lake Public Library or call Laura Malone or Grace Broome.

Digital or Virtual Currencies

Commonly-traded examples include Bitcoin, Ethereum, Litecoin, and more. Digital or virtual currencies such as cryptocurrency are classified as property assets by the IRS and are treated with the same rules as non-cash charitable gifts. Potential gifts of these currencies are evaluated on a case-by-case basis. Upon review and acceptance of this gift by the Acceptance Committee, these gifts will be converted to U.S. Dollars as quickly as administratively possible when the gift is received.          

The Community Foundation reserves the right to direct the donor to make their gift to a qualified 501(c)(3) nonprofit that will accept and sell gifts of cryptocurrency, issue gift acknowledgments or receipts, and disburse the full realized gain to the Community Foundation of Lorain County.

In all digital or virtual currency gift cases, a completed IRS Form 8283 (“Noncash Charitable Contributions”) must accompany gifts of tangible personal property. Cryptocurrency gifts of $5,000 or more will require a qualified 3rd party appraisal for the donor to take a deduction.