A Fund for the Future
The Board of Directors of eta Creative Arts Foundation in its wisdom and commitment to its fiduciary responsibilities began in the early 90's to "multiply the voices" through the creation of a "fund for the future." They realized that an endowment fund had to be put in place if we wanted to continue the eta legacy for future generations
John W. Rogers, Jr., Ariel Capital Management, Lester McKeever, Washington, Pittman and McKeever and John Lassiter, Financial Designs, Inc.(now deceased) agreed to co-chair the endowment/investment committee. With committee members, the group gives direction, oversight and develops strategies to grow the "fund for the future" over time.
While the principal of the endowment fund will remain in tact, at some point the interest can be used to support the operating budget. To have an endowment fund and to work toward its growth is very important as we seek to be increasingly self sustaining. As of December 31, 2004, the fund stood at $1,787,428. Under the guidance of the committee and Schlindwein & Associates as independent investment counsel, the funds have been wisely invested and, despite, the volatility of the market, the portfolio has done well.
Contributions to the endowment fund can be sent directly to eta Creative Arts Foundation or to the Chicago Community Foundation (an affiliate of the Chicago Community Trust which established a designated endowment fund in eta's name as a kick-off to the campaign in the mid-nineties.
Within the context of estate planning, there are many tax saving advantages to contributing to the endowment fund. If interested email us at email@etacreative arts.org We'll be happy to send you the brochure.
You Can Help
You can help by making a gift to support eta. It will be more than a reflection of your personal beliefs and values. Thoughtful, planned giving can play an important role in your overall financial strategy or estate plan. Some people choose to make gifts outright during their lifetime. Some decide instead to remember a charity in their will or through a trust or life insurance.
You can give directly to eta (where funds are managed by private money managers under the supervision and direction of the Board of Directors) or, you can give through the Chicago Community Trust, which established a designated Endowment Fund of $500,000 at the Chicago Community Foundation, its subsidiary, for eta Creative Arts Foundation. The designated endowment can be expanded through contributions from families, groups, or individuals that wish to help eta build for the future.
Whether you give directly to eta or through the Chicago Community Trust, following are some of the most common ways of giving substantial gifts. Your tax or financial advisors can help you determine which action best complements your overall financial strategy or estate plan.
Gifts Made During Your Lifetime
A gift made during your lifetime can be especially gratifying. In addition to seeing firsthand the direct benefits of your action, potentially significant tax advantages may accompany your support. And, because of its not-for-profit status, eta enjoys the full value of your gift, since it is not required to pay tax on capital gains.
Gifts Under Will
Remembering eta in your will is another way of making an important gift. Simply put, the assets you give remain in your name and under your control during your lifetime and become the property of eta only after your death and according to the terms of your will. This may be particularly appropriate if your situation is such that an income tax deduction is not a driving factor in your decision to make a significant donation. On the other hand, when the gift is made at your death there is a corresponding reduction in your taxable estate, which may be beneficial to your heirs.
Charitable Remainder Trust
You also may choose to make a gift by establishing a charitable trust. In addition to the satisfaction of giving, a charitable trust may help reduce income tax, eliminate capital gains tax, and lower taxes on your estate.
A charitable remainder trust is designed to pay annual income to the donor. In this case, the trust documents provides that income earned by the trust goes to the donor and/or eta while the donor is alive, with the remainder going to eta upon the donor's death. Though cash or other property can be used to set up the arrangement, securities generally are the most common means of funding a charitable remainder trust. Once established, the trust cannot be amended or revoked.
There are two types of charitable remainder trusts: the annuity trust and the unitrust.
The Annuity Trust
An annuity trust provides an annual income of at least five-percent of the value of the trust based on a valuation that takes place at the time it is funded. In other words, you or eta can receive periodic payments of a fixed sum that is determined when the trust is established. This means you can count on a steady income in an amount that does not vary over time.
This type of trust is most suitable for a donor who wants to give away property but also wants to retain a dependable stream of income. And, since the amount of the distribution paid by the trustee does not vary, it is an uncomplicated arrangement for both you and the trustee.
Closely related to the annuity trust is the unitrust. In this case, the payments received by the donor are not fixed amounts, but rather a fixed percentage (minimum five percent) of the assets, based on an annual valuation. This means that, particularly if the unitrust is funded with assets likely to increase in value, as these appreciate so will the amount of incomer distributed to the donor.
Some individuals prefer a variation of this arrangement in which they receive the income earned or the fixed percentage, whichever is less. In this case, a special "make-up" provision can be included in the trust document. If the income earned in a given year is less than the fixed percentage, the "make-up" provisions allow the difference to be added to distributions made in subsequent years when income earned exceeds the fixed percentage.
Another common way to give is through life insurance. You can name eta as your beneficiary. The annual premium is deductible from your taxable income.
"Spirit of eta", the Foundation's contributor wall was unveiled in the theater lobby in February 1994. It was designed an installed by Dr. Ausbra Ford of Chicago State University. The wall bears inscribed names of those whom, by contributing $1,000 or more to the Endowment Fund become "custodians of our culture". This wall also provides an opportunity to commemorate those held dear so that they, too, will be known to future generations.
A Special Opportunity
Above all, your support of eta is a personal expression of your values. Nothing else provides quite the same means of reinforcing your goals and dedication to our cause, Please call eta at (773) 752-3955 for more information.
If everyone in eta's data base responds to the campaign at a minimum level of $100, the campaign goal will be more than realized. This is a lifetime opportunity for everyone to be involved to insure that eta Creative Arts Foundation will be around for generations to come.