Pay It Forward FOREVER Fund
Funding Our Future
In celebration of the The Minneapolis Foundation’s centennial year, we have created the Centennial Pay it Forward FOREVER Fund, a new twist on endowment that will maximize the impact of your giving for centuries to come.
With a gift of $25,000, you can join other visionary philanthropists to establish a powerful, lasting legacy for future citizens of Minneapolis that will provide significant grantmaking funds and a permanent endowment at the Foundation.
A New Twist on an Old Idea
Founding Father Benjamin Franklin called compounded interest the “eighth wonder of the world.” After years extolling the virtues of penny pinching, in 1789 Franklin wrote a codicil to his will that combined his investment philosophy with his philanthropy by establishing a 200-year endowment to benefit the communities of Boston and Philadelphia. He included broad direction on how to spend some of the principle after the first 100 years, and 100 years after that. His resources, compounded over the decades, helped build museums and colleges and provided hundreds of scholarships. Today, some Franklin funds held by community foundations continue to support nonprofit organizations in Pennsylvania.
Philanthropy’s New Math
Endowments provide a secure, consistent source of income and a lasting legacy, but, since most institutions spend income at a rate of about 5 percent per year, the impact is slow. In contrast, non-endowed gifts can meet immediate needs and fund dramatic change, but once the money’s gone, it’s gone.
The Pay It Forward FOREVER Fund offers the best of both worlds: Perpetual fund growth and dramatic impact in partnership with a trusted community leader, The Minneapolis Foundation.
The Pay It Forward FOREVER Fund is a financial time capsule of sorts. The Foundation is investing 100 new gifts of $25,000 for maximum growth until the year 2065. At that time, Trustees will allocate 80 percent of the fund to community impact grants and retain the remaining 20 percent to grow the fund. Each 50 years, we will do the same thing again, in perpetuity. The compounded impact is astounding.
Timeline for Growth
100 individuals, families and corporations invest $25,000 in new giftsto form the $2.5 million Pay It Forward FOREVER Fund.
After 50 years of investment, the fund will reach nearly $29 million.* Eighty percent of the fund’s value – nearly $23 million – will be shared with the community through grants.
By the Foundation’s bicentennial, the fund will have reached nearly $66 million. Eighty percent of the fund’s value will again be granted out to the community and the remaining 20% will be invested for another 50 years.
Only a community foundation like The Minneapolis Foundation can offer you an opportunity like the Pay It Forward FOREVER Fund. The Minneapolis Foundation has connected people, charitable resources and ideas for 100 years, and we plan to do that for another century. We’re the guardians of your generous gifts, your vision and your hope for the greater Minneapolis area. Our donor advisors and Trustees are united behind common goals and driven to spark positive change in our community.
We don’t know what the future will hold for the greater Minneapolis area or what challenges and opportunities our descendants and successors will face in 50, 100 or 150 years. But, like Benjamin Franklin, we know that careful stewardship and creative generosity today can have a powerful impact tomorrow. Please join us in this exciting, centennial-year opportunity at The Minneapolis Foundation.
Donors to the Pay It Forward FOREVER Fund who wish to have their gift made public will be recognized in printed and online materials created for the Centennial Futurist Conference on September 18, 2015. The conference is expected to attract 1,500 business, community and government leaders for a day of presentations and discussion at The Minneapolis Convention Center. Following the conference, donors to the fund will be recognized in appropriate Foundation publications and social media channels.
Become A Centennial Futurist!
Contact us today to learn more about this once-in-a-century opportunity to change lives and shape the future.
Beth Halloran | Senior Vice President, Advancement