Calculating Your Endowment

Thoughtful Spending, Prudent Investment

An endowment also means maintaining a steady hand both on spending and investment.

When you create a fund through Placer Community Foundation, your gift can benefit the community forever with a permanent endowment. Your gift is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift is a permanent source of community support, helping do good work today and in the future.

One Gift, Many Generations

Consider how an endowment gift can grow. If you make a $100,000 gift this year, 15 years from now, the fund you establish will have a balance of $158,000 and will have distributed more than your initial gift amount in grants. In 25 years, your initial gift amount will have been given away twice. And by year 50, your fund will have a balance of $455,000 and will have made cumulative grants of $627,000—a philanthropic rate of return of nearly 1,000 percent in grants and growth. This example assumes a 5 percent annual payout and an 8.5 percent rate of return.