Q. What is an Endowment Fund?

An Endowment Fund is an organization's invested capital that generates funds to be used, in perpetuity, to support the organization. The investment objective is to maximize total return (dividends plus market value) within reasonable risk parameters. The Fund's investment mixture consists primarily of high-quality, readily marketable stocks, bonds, and other assets. Each year the organization spends part of the endowment earnings on current operations and on the purposes designated by donors. To protect the principal against inflation, part of the earnings are reinvested. The amount to be spent, called the payout rate, is set by the Board of Trustees to secure and even increase the buying power of the endowment. Our goal with our Endowment Fund is to provide financial support for our programs as well as to grow endowment principal. Endowment income provides a hedge against downturns in the economy, federal and state budget cuts, fluctuations in the political climate, and other economical changes.

Q. Why does Waterfowl USA need an Endowment Fund?

Currently, Waterfowl USA must raise 100 percent of its annual operating budget each year, tying the organization's financial solvency to the uncertainties of inflation, recession or political downturns, and other factors beyond its control. A healthy Endowment Fund protects the long-term stability of Waterfowl USA and provides a predictable stream of income over time. In addition, it will change our focus from raising operating funds and allow the organization to focus on growth and development of more waterfowl habitat projects.

Q. What is the purpose of the Waterfowl USA Endowment Fund?

The Waterfowl USA Endowment Fund is a permanent investment portfolio, managed by our Fund Managers, based on our Investment Policy and under the direction of the Trustees of the Endowment Fund. This Fund will provide financial support to current and future Waterfowl USA programs in perpetuity, providing earnings over the decades in support of wetland habitat conservation activities. Eventually, tax-deductible donations to the Fund will never be spent; they will build a balance from which an annual distribution to Waterfowl USA will be made. Unrestricted Endowment earnings support the general operating budget. Other Endowment earnings support membership, chapter support, youth programs, or other programs, as specified by the donors.

Q. How large should the Endowment Fund be to ensure long-term financial stability for Waterfowl USA?

The ideal level of funding would be for the Endowment to provide 100 percent of Waterfowl USA's annual operating budget. Waterfowl USA's operating budget of $300,000, ideally, would be funded completely from Endowment Fund earnings. At an annual distribution of 5 percent, the balance of such an Endowment should be $6 million. As the balance grows beyond this amount, Waterfowl USA will be able to expand our waterfowl habitat projects at an even faster pace.

Q. Why is the initial Endowment Fund Campaign set at $3 million if the ultimate goal is $15 million?

The initial campaign is an important beginning for the newly established Endowment Fund. The Board of Directors and Board of Trustees feel that our initial goal needs to be realistic, but yet large enough to have an immediate, major impact on this fiscal year's operating budget.

Q. Besides the initial Campaign, how will Waterfowl USA build its Endowment Fund?

First, all bequests and memorial gifts to Waterfowl USA, unless targeted to a particular program or annual budget need, will be added to the Endowment Fund. Also, the Planned Giving Committee of the Board of Directors is developing future endowment campaigns for specific programs and other gifting opportunities for the Endowment. In addition to gifts of cash and securities, estate planned giving vehicles (e.g., charitable remainder unitrusts, real estate transfers) and other ways of giving are available. The Planned Giving Committee works with donors, their legal advisors and the Board to develop a mutually advantageous giving plan.

Q. Can I control the way my Donation is Utilized?

You may make a contribution to any of the Funds that are already established or a personalized Endowment Fund may be established by an individual, family, corporation, or private foundation during a donor's lifetime or by bequest. Two types of funds exist to best meet the needs of each donor.

• Unrestricted Funds are the broadest option for donors. An unrestricted fund allows the Endowment Fund to target dollars toward a wide range of needs, providing the capital for the efficient and effective operation of the organization.

• Designated Funds are established by donors who wish to specify a particular program to receive the proceeds of their Fund. The organization benefits from the proceeds of the Fund's earnings, and allows the organization to concentrate on its programs and mission rather than raising operating capital.

Q. Can I make a donation to the Endowment Fund in the Memory of a Loved One?

Yes, we welcome memorial gifts and even gifts to honor a special occasion or to honor a special accomplishment of a living person. Unless otherwise designated by the donor, these gifts are placed in the general Endowment Fund where they will continue to honor the person's memory and accomplishments. When a memorial is received, the Endowment Fund sends an acknowledgement to the family of the deceased or to the honoree. The donor also receives a thank you for the gift for tax purposes and is recognized in our annual report.

Q. What Is Needed To Establish A Personalized Endowment Fund?

A personalized Endowment Fund can be established with a gift of $10,000 or more. This can be done through an irrevocable gift of cash, stock, real estate, or any other giving option. In establishing a personalized Endowment Fund, it is the donor's decision to determine the name of the fund as well as how the annual income is to be distributed. After a donor has made a gift to establish an Endowment Fund, a resolution is prepared for the next Board of Trustees meeting for formal approval of the name of the fund and the designation of annual income.

Q. Can I give to the Endowment Fund instead of my annual Waterfowl USA membership dues?

Donors are free to specify how they would like their donations to be used. However, the annual membership dues to Waterfowl USA are our main source of funding. We hope that our members will elect to make a sizable donation to the Waterfowl USA Endowment Fund in addition to, not in lieu of, their annual membership dues.

Q. If the Endowment Fund lasts forever, what happens to the Fund if Waterfowl USA should cease to exist?

A strong Endowment Fund is the best guarantee that Waterfowl USA will be around for as long as our wetland habitat and waterfowl resource need our assistance. If, however, our Board of Directors were to decide to dissolve our organization, the last Board of Directors, in conjunction with the Board of Trustees of the Endowment Fund, will decide whether to transfer the Endowment Fund to another non-profit waterfowl conservation organization with a similar mission or to continue the Endowment Fund in order to fund specific projects and organizations on an annual basis.