Skip to Content

Endowments: A Way to Give Well Into the Future

A Benson woman's gift is now helping patients here at Johnston Health.

During her lifetime, Benson native Cara Lee Priest was known as a selfless, giving person who liked to save.

After her death in August 2009, her family chose to honor her memory with an endowment through the North Carolina Community Foundation. Because of that gift, Priest is, now and forever, helping to provide services and programs benefitting patients at Johnston Health.

Kemp Mosley, an associate attorney at Narron, O'Hale & Whittington, P.A., in Smithfield, says there are many benefits to endowed charitable gifts. "The grantor is able to truly perpetuate the gift and to define the potential uses," he says. "The principal will always remain intact. The charity will receive perpetual annual benefits. And the endowed gift remains 100 percent tax deductible."

A concern for many donors is how their permanently endowed gift will be managed and invested.

The North Carolina Community Foundation works with investors to make sure their money is invested wisely, says Alison Drain, director of the Johnston Health Foundation.

"They are a fixture in charitable gift management and hold many endowments set up on behalf of nonprofits across the state, including our own Johnston Health Foundation," she says. "Having that expertise and experience gives donors peace of mind, knowing that their money will be kept safe."

Drain points out that Johnston Health faces challenges as it continues to serve uninsured and underinsured patients while also adapting to changes in the health care industry. "An endowment for the hospital can have a huge positive impact if the gift is invested wisely and allowed to grow with donations," she said.

Drain says financial donations can be made directly to the Johnston Health Foundation Endowment or donors can set up new endowments by making a gift or leaving a bequest in their will.

The foundation's page on the Johnston Health website provides language that can be used when making a charitable bequest to the Johnston Health Foundation Endowment.

"Giving money to an endowment is investing in the future of a community," Drain adds. "It's one way to ensure that our children and their children have a better place to live and work."

eBrochure Request Form

Please provide the following information to view the brochure.

First name is required
Last Name is required
Please include an '@' in the email address

A charitable bequest is one or two sentences in your will or living trust that leave to the Johnston Health Foundation a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I give to the Johnston Health Foundation, a nonprofit corporation currently located at PO Box 1376 Smithfield, NC 27577, or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to the foundation or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to the foundation as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to the foundation as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and the foundation where you agree to make a gift to the foundation and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.

Personal Estate Planning Kit Request Form

Please provide the following information to view the materials for planning your estate.

First name is required
Last Name is required
Please include an '@' in the email address