Comments on: The Great Debate Continues: Invade Your Endowment or Not? http://ejewishphilanthropy.com/the-great-debate-continues-invade-your-endowment-or-not/ Connect. Educate. Innovate. Sat, 11 Feb 2012 12:13:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Lauren Scharf Azoulai http://ejewishphilanthropy.com/the-great-debate-continues-invade-your-endowment-or-not/comment-page-1/#comment-22067 Lauren Scharf Azoulai Tue, 10 Mar 2009 17:04:46 +0000 http://ejewishphilanthropy.com/?p=1616#comment-22067 In the 30 years I have worked in the American Jewish community, I have always understood that we have a sacred trust with our donors. If we accept a gift designated for a certain purpose, whether it is an endowment, outright gift, or a pledge being paid out, this sacred trust requires us to honor the wishes of the donor. This is true whether one is a professional in the organization or a leader. When the sacred trust crumbles, the future organization is at risk. In the 30 years I have worked in the American Jewish community, I have always understood that we have a sacred trust with our donors. If we accept a gift designated for a certain purpose, whether it is an endowment, outright gift, or a pledge being paid out, this sacred trust requires us to honor the wishes of the donor. This is true whether one is a professional in the organization or a leader.

When the sacred trust crumbles, the future organization is at risk.

]]> By: Sam Convissor http://ejewishphilanthropy.com/the-great-debate-continues-invade-your-endowment-or-not/comment-page-1/#comment-21953 Sam Convissor Mon, 09 Mar 2009 18:28:41 +0000 http://ejewishphilanthropy.com/?p=1616#comment-21953 Like so many isues, there is no right or wrong answer. So much depends on the size of the endowment, the nature of the service being provided by the agency and the prospects for restoring the level of the endowment. If you are taking from the endowment monies to service children or adults that will go hungry and ill housed and not taking money from the endowment means that these families be truly destitute there is an obligation to continue the service you have been providing. If the question is to postpone an expansion or new landscaaping for the synagogue, then of course the answer is NO. Like so many isues, there is no right or wrong answer. So much depends on the size of the endowment, the nature of the service being provided by the agency and the prospects for restoring the level of the endowment. If you are taking from the endowment monies to service children or adults that will go hungry and ill housed and not taking money from the endowment means that these families be truly destitute there is an obligation to continue the service you have been providing. If the question is to postpone an expansion or new landscaaping for the synagogue, then of course the answer is NO.

]]> By: Chris Morton http://ejewishphilanthropy.com/the-great-debate-continues-invade-your-endowment-or-not/comment-page-1/#comment-21931 Chris Morton Mon, 09 Mar 2009 14:21:24 +0000 http://ejewishphilanthropy.com/?p=1616#comment-21931 There are additional issues to consider. Has the state where the charity is located passed UPMIFA or is it still using the rules established by UMIFA, which is the management of funds act? UPMIFA permits invasion of principal of endowments and UMIFA allows invasion only to "historic dollar value", which is generally equivilent to the opening value of an endowment. Most charities have not established rules as to invasion of principal of unrestricted endowments. It would be a recommendation that the Board of the charity or synagogue will need to have greater than a majority vote to invade the principal of an unrestricted endowment. The difficult balance is between protecting for the future and providing relief during very difficult financial times. I suspect that most attorneys general will not have the staff time or willingness to deal with this issue. There are additional issues to consider. Has the state where the charity is located passed UPMIFA or is it still using the rules established by UMIFA, which is the management of funds act? UPMIFA permits invasion of principal of endowments and UMIFA allows invasion only to “historic dollar value”, which is generally equivilent to the opening value of an endowment.

Most charities have not established rules as to invasion of principal of unrestricted endowments. It would be a recommendation that the Board of the charity or synagogue will need to have greater than a majority vote to invade the principal of an unrestricted endowment.

The difficult balance is between protecting for the future and providing relief during very difficult financial times. I suspect that most attorneys general will not have the staff time or willingness to deal with this issue.

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