Friday, July 18, 2008

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Charitable Gift Planning
Charitable Planned Giving

Endowments

When you include MPR in your will/trust or as a beneficiary of a retirement plan or life insurance policy, Minnesota Public Radio will invest the funds in the MPR Endowment with other previous gifts. A team of investment professionals manages the entire endowment. Each year, MPR receives a distribution of approximately 5% of the value of the fund. If the endowment earns an average of 8%, the additional 3% remains in the fund; thus your original gift to MPR will increase over time.

The chart below illustrates the growth of the annual distributions to MPR of an endowment gift under these assumptions. The 3% net growth in the fund each year means the following year there is a greater amount available to MPR. Looking at the chart, you can see that in the tenth year the fund has grown to the point where it is able to provide $1,361 to MPR. Each year it will continue to grow. In year 50 it will be able to provide $3,799 dollars to MPR.

MPR Endowment Chart

All told, over the fifty years we have charted, the fund will have distributed a total of $108,367 in annual distributions to MPR. All that from a single $20,000 gift that has now grown to almost $76,000 and continues to provide needed distributions to MPR. Of course, this is based on the assumptions we outlined in the opening paragraph; that the fund grows at 8% each year and pays out 5% to MPR leaving 3% additional in the fund each year.

Your original gift is never depleted; it provides annual support each year into the future.

Pat Cook
Individual financial circumstances vary. The information on this site does not constitute legal or tax advice. Because of the complexity of estate planning, it is important that your attorney structure your estate and draft your will or truts so as to best carry out your wishes. Minnesota Public Radio cannot act as executor of a donor's estate. Individual support guarantees that substance and values, not commercial considerations, govern our programming. Please include MPR in your will and provide a sound legacy to future generations.

We use reasonable efforts to include up-to-date and accurate information on this site, but make no representations, warranties or assurances as to the accuracy or completeness of the information provided. MPR is not liable for any damages related to your reliance on this Charitable Gift Planning site.

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