Habitat’s endowment is a permanent fund that is invested for the benefit of our mission.
It is a philanthropic tool that allows Habitat to expand access to affordable housing for generations. Creating an endowment with Habitat is easy and comes with the freedom to direct your gift for a specific purpose based on your priorities. For example, you may choose to fund an endowment supporting our work building homes with families in the United States. Some donors create endowments that support our advocacy work to change housing systems and expand equitable access to stable and affordable housing around the world. Many donors choose to direct their gifts in a specific way, and their wishes are documented in a signed gift agreement with Habitat. You can also specify naming for the fund — in your name or in honor of a relative or friend.
- Habitat’s Endowment Fund has grown 105% since 2016.
- More than $848,296 has been invested in Habitat programs from the Endowment Fund over the past six years.
- Our Endowment Fund has an annual management fee rate of only 0.4%, which is lower than most. There are no additional management fees, and we do not assess internal management fees on distributions from the endowments.
The best way to ensure that your support of Habitat for Humanity lives on is to give a gift to our Endowment Fund. When you donate to the fund, your gift has both immediate and long-term benefits, and you create a legacy that will impact generations.
Habitat’s Endowment Fund helps families like Neil and Erika, who love that their new home has given them space for a garden, so they can spend time playing outside with their children.
What is an endowment?
An endowment is a pool of money that is invested to generate annual earnings, which can then be used to support an organization. Gifts of cash, financial assets or other property can be donated to an organization and used to fund an endowed account. The original gifts to an endowment — also called the corpus — are invested by the organization. When you make an endowment gift to Habitat, we will use the earnings or capital appreciation from that gift to support a Habitat program of your choice.
How does Habitat use the Endowment Fund?
Each year, endowment income is used in three ways:
- 1. A portion is used to fund programs and services.
- 2. A portion is added to the principal, which causes the endowment to grow over time.
- 3. A small portion pays fees to professional managers who invest funds.
What kinds of funds can be used to establish an endowment?
Funds can come from donors in the form of cash, financial assets, real estate or various other assets. Gifts can be made outright by the donor or via a planned giving vehicle such as a will or life insurance policy. Donors can designate a particular program or local Habitat affiliate to be supported by the earnings from their endowment or designate the funds to support Habitat’s overall mission. Endowed accounts can also be established by our affiliates for their own benefit.
How much do you need to establish an endowment?
How do you establish an endowment?
Why establish a new endowment or donate to an existing endowment?
Investing in Habitat’s Endowment Fund is beneficial in many ways:
1. You create a permanent income stream to support
our mission.
When you create an endowment with Habitat, you become an integral partner in building strength, stability and self-reliance through shelter. The annual income generated by your endowment provides financial support to continue and expand our ability to serve families. With a hand up from you, Habitat homeowners can access necessary resources and develop the confidence they need to invest in themselves and their communities. These outcomes create positive change that impacts multiple generations and entire communities.
2. Habitat’s Endowment Fund has lower management fees.
Typical annual management fees from other money managers or community foundations can begin at 0.75% and go up to 2% or higher. Habitat has an established partnership with Bank of America to manage our Endowment Fund. Our annual management fee rate is 0.4% for the entire pool. These lower rates mean more of what you donate can go directly to those in need.
3. Our investment policies align with Habitat’s values.
Management of our Endowment Fund is overseen by the finance committee of our board of directors and is ratified by the entire board. Investment options are regularly reviewed and evaluated to ensure that they reflect our goals and values.
The Endowment Fund helps people like Tamilarasi, who is proud to own her home in Nagapattinam, India.
“What we can do is give some of our resources to a good organization that is efficiently helping millions of people. What could be better for creating a stable society than creating a stable place to live? It seemed like a no-brainer, quite frankly.”
—George Edwards, who has left a gift to Habitat’s Endowment Fund in his estate plans
Read our Endowment Fund Reports
Complimentary planning resources
Learn more about easy ways to leave a legacy with our free guides!
I’m here to help!
Bryan Landry
Senior Director, Planned Giving
plannedgiving@habitat.org
Toll free phone: 833-434-4438