WHAT IS LEGACY ENDOWMENT? What do we do?
A PROFILE OF LEGACY ENDOWMENT • LEGACY’S MISSION STATEMENT • “To support & increase Charitable Giving in our Southern California communities. LEGACY’S VALUE STATEMENT “As the organization’s legal and moral guardian, the Board of Directors is responsible for safeguarding its current & future welfare and fulfilling its obligations to the Donors and Beneficiaries it serves”.
LEGACY ENDOWMENT IS: • A PUBLIC CHARITY • DEFINED AS A COMMUNITY FOUNDATION, under the Department of the Treasury regulations. (Appendix 1)
UNLIKE OTHER PUBLIC CHARITIES, A COMMUNITY FOUNDATION ; * Serves a defined geographical area. * Is open to all donors & can serve multiple, as opposed to, restricted purposes. * Can manage the financial assets of other organizations & individual donors. * It can exercise “The Power of Variance.”
WHY?To provide an opportunity for donors in our Southern CA Communities to put donations to use IN the neighborhoods where we live WHEN?Legacy Endowment incorporated in 1994 and started its first Investment Pool in 1997. WHO? TheLegacy Endowment Board of Directors are the caretakers
WHAT ARE OUR LEGAL RESPONSIBILITIES? • Conform with the requirements of Corporate, Non profit and Trustee Laws and IRS Rules and Regulations. • It is a legally appointed Trustee for the Charitable Remainder Trusts it manages. • It “considers” itself to be a Trustee in all other aspects of its Administration and Management.
SERVICES PROVIDED • Planned Giving • Management of a variety of funds; • a) To meet a variety of Donors’ needs, together with.. • b) Short, Medium and Long Term Investment Horizons.
LEGACY ENDOWMENT’S FUND OPERATION • SHORT TERM “PASS THROUGH” FUNDS. • To Enable donors to make tax deductible donations to meet the immediate cash requirements of tax exempt organizations. • Time horizon, 1-12 months. • Invested in Money Market Funds.
CHARITABLE REMAINDER TRUST FUNDS and ENDOWMENT FUNDS Time horizon, Long Term (10 + Years) Managed to meet all the requirements of “The Prudent Investor Rule”, UPIA and UMIFA.
MEDIUM TERM PASS THROUGH FUND. • Legacy Endowment has been working on the development of this type of fund for just over a year. • It is designed to serve the needs of organizations with a 2 – 5 year time horizon.
STRUCTURE OF THE MEDIUM TERM PASS THROUGH FUND • Combination of Fixed Income & Equity Funds (60/40). - Better diversification than Fixed Income only. - Active Management - Target Rate of Return – 6% p.a. (before Legacy Fees). Target Standard Deviation – 12% p.a.
Minimum $100,000 Initial Investment. - Additions - $25,000.00. - Set up cost: $750.00. • Fees. - Up to $1 Mil, 1.5% p.a. maximum. - Above $1 Mil, 1% p.a. minimum.
Distributions – 30 days notice. • Minimum Account Balance - $100,000. - Closing Costs - $500.00 plus any incidental costs. • Donor Participation and Reporting. - Investment Committee Participation. - Quarterly Reporting.