The Power of Endowment

One of your first decisions when establishing a fund at the San Antonio Area Foundation is whether you will make it last forever. It’s up to you.

Your charitable gifts can be permanent.

An endowment is a permanent fund, and with it comes several advantages. An endowment will:

  • Provide dependable, perpetual income to your chosen cause or nonprofit
  • Carry on your family’s name – and legacy – forever
  • Allow successive generations to continue your family giving tradition

Endowments offer tremendous benefits to your favorite nonprofits. An endowment can ensure vitality and sustainability, with a steady stream of funding for your causes. Read how Semp Russ' gift in 1979 is continuing to grow and grant to nonprofits.

Thoughtful spending, prudent investing

An endowment also means maintaining a steady hand both on spending and investment.

Based on longitudinal reviews of stock market returns over many decades, esteemed colleges like the University of Pennsylvania’s Wharton School of Business issued institutional spending studies that encouraged colleges and foundations to limit total annual expenditures for salaries, buildings and grants to 4.5 to 6 percent of their endowment’s corpus. They said any additional investment earnings should be invested back into the endowment to make up for years when the market under performs.

The studies predicted – and practice has shown – that by implementing such a spending rule, endowments could replace those annual expenditures and overcome inflation. Spending limits of 5.5 percent and below can actually increase assets.

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San Antonio, TX 78215

The San Antonio Area Foundation helps donors achieve their charitable goals for the greater benefit of the community.

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