Endowments form a long-term foundation for CMS and its members. When an endowed fund is established, the principal is generally maintained, and the investment earnings are used to grant yearly awards. As a result, an endowment should last indefinitely.
Endowed funds may support a designated area or they may be unrestricted so they may be used where the need is greatest at CMS.
As of this fall 2016, the minimum contribution needed to fund an endowment as part of the CMS Fund endowment is $15,000. This contribution can be made all at once or it can be contributed over a period of 5 years. If the minimum amount needed to create the endowment is not met within five years, the fund may be converted to a non-endowed fund and may be spent according to the originally stated purpose of the fund. If the original purpose no longer exists, the remaining funds will be added to The CMS Fund’s unrestricted contribution account.
When creating an endowed fund within The CMS Fund, an Endowment Agreement form is prepared. The Endowment Agreement is a document signed by both the donor(s) and The CMS Fund to establish guidelines and procedures for how the donated funds are to be used.
The Fund remains open for future contributions from original donors or others. Such contributions may be designated for the endowment principal or the endowment pay-out account.
Non-endowed funds play an important role at CMS. Unlike endowed funds, contributions made to non-endowed funds are distributed in the same year that they are received. Non-endowed funds may support a designated program, or they may be unrestricted so they are used where the need is greatest at CMS.
Non-endowed funds are an ideal option for those who want to support CMS and The CMS Fund but do not have the goal of having an award for perpetuity. Non-endowed funds are also a great alternative for those who might have excess funds available each year but who do not have the full endowment minimum or for those who have a lump sum to contribute and would like to provide for an award for a certain number of years.
When creating a non-endowed fund with The CMS Fund, a Non-Endowed Fund Agreement is prepared. The Agreement is a document signed by both the donor and The CMS Fund to establish guidelines and procedures for how the gift is to be used.