Establishing an endowment supports the Colorado Community College System in perpetuity and is a wonderful way to leave a legacy.

An endowment fund is a permanent, self-sustaining source of funding. Endowments are funded by gifts that are permanently invested by the Foundation for Colorado Community Colleges. A portion of the fund is distributed each year to support the fund’s purpose. An endowment’s principle remains intact, with interest, dividends, and gains making up the spendable portion of the fund. The annual distribution amount is governed by the Foundation’s Endowment Spending Policy. Additional earnings are reinvested to provide for growth of the fund over time, as well as to preserve the purchasing power of the original gift. The Foundation provides endowment donors with an Endowment Report annually.

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Thank you for enabling me to reach my fullest personal and professional potential.
Mariam Osman, Foundation Scholar

Endowment FAQs

What is an endowment?
An endowment fund is a permanent, self-sustaining source of funding. Endowment assets are invested and a portion of the value of the fund is distributed each year to support the fund’s purpose.
How does the value of my gift grow?
A donor may make an initial gift of $100,000 to establish an endowed scholarship fund. Based on annual returns of 6% and a simple distribution formula of 5%, the chart below demonstrates the fund’s activity through its first five years. This fund would provide a total of $26,874 in scholarships, while maintaining the value of the principle and seeing its market value grow to $103,549 over this time period. It would continue to provide scholarships in perpetuity.
Years Invested Value of Fund Annual Distribution Ending Value
1 $106,000 $5,300 $100,700
2 $106,742 $5,337 $101,405
3 $107,489 $5,374 $102,115
4 $108,242 $5,412 $102,830
5 $108,999 $5,450 $103,549

Please note, the above is simply an illustration and earnings will vary annually. The Foundation has policies in place to address endowments that are underwater (meaning the market value of the endowment is less than the historic value). The Foundation currently utilizes a 12 trailing quarter market value average with a 5% annual distribution rate with 4% utilized for the purpose of the endowment and 1% retained by the Foundation for operational expenses.

How much does it take to establish an endowment?
Donors can establish an endowment with a minimum of a $25,000 gift to the Foundation for either scholarships or another purpose. This initial gift stays in perpetuity and the earnings it generates are used to support the donor’s request.
What is the advantage of an endowment over a cash gift?
A portion of the value of the fund is distributed each year to support the funds’ purpose. Any excess of the amount distributed builds the fund’s market value. In this way, an endowment fund can grow and provide support for its designated purpose in perpetuity. This source of continued funding provides the Foundation with the ability to plan and flexibility to meet new challenges.
Why should I create an endowment?
When you establish an endowment fund, you create a permanent legacy of support for students, colleges, faculty and staff.
How are endowed funds invested?
Read our Investment Policy Statement here.

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720-858-2802 | foundation@cccs.edu | 9101 E Lowry Blvd, Denver CO 80230