Choosing the Right Gift Plan: Understanding Annual vs. Endowment Funds at Carleton University
By: Holly Greatrex, BA/21, CFRE
A lot of thought and preparation goes into making a charitable gift plan. At Carleton University, our donors must also consider if they want to support an annual or endowment fund. Endowment and annual fund donations are both excellent ways to make a difference. It's important to understand the benefits and boundaries of each gifting method to select the right plan for you.
Annual fund donations – or expendable funds – provide an immediate source of revenue. Expendable gifts can be spent in the year they were gifted or over a set period. Your donation will have an instant impact on charitable activities because the money is available right away.
Endowment gifts never stop giving. Endowed gifts allow you to permanently fund areas where you have a particular interest and provide a meaningful and long-lasting legacy. Endowment funds offer stable and consistent funding year after year. Recurring needs, such as scholarships and bursaries, are most effectively supported through endowed gifts.
In the spring of 2024, we sent an e-survey on philanthropy to a select group of alumni, donors, and friends and asked which type of fund they thought was most important at Carleton. 81% of the respondents selected endowment funds, and 19% chose annual funds as their top pick.
Both types of gifts can bear the donor's or a loved one's name and be restricted to certain support areas if minimum gift amounts are met. Endowed funds and annual fund gifts are lovely, enduring tributes to your life or the life of someone you care about, especially when they are named.
Planning your gift through Carleton University is a powerful statement of trust and belief in the value proposition of higher education. Perpetual funding, or immediate impact, is something you need to consider when choosing the right gift plan for you. Regardless of the gift plan selected, a gift to Carleton University is an investment in our students – providing them with the opportunities to learn, discover, and make a meaningful impact on the world
