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Power of Endowments
What is an endowment?
An endowment is a charitable fund set up to continue forever, providing ongoing charitable impact.
Donors who create a charitable fund at Mid-Nebraska Community Foundation have the opportunity to benefit one or more worthy causes forever with a permanent endowment. Endowment funds are invested. The tax-exempt investment earnings are used to provide annual scholarships or used to make grants or pay regular distributions to non-profit organizations.
Endowment funds with ongoing tax-exempt investment earnings are a permanent source of charitable funding, doing good over and over, far into the future.
Endowment Funds are lasting legacies with ongoing impact.
In 1991, Ken and Pat Langford gave $100,000 to Mid-Nebraska Community Foundation, establishing the Langford Family Scholarship as a charitable endowment.
When Ken Langford died on April 8, 2005, the Langford Family Scholarship Fund already had paid out $97,250 in scholarships to students from Lincoln County in Nebraska.
Through the “magic” of compounding tax-exempt investment earnings, the balance in the Langford Family Scholarship Fund had grown to $143,220 at the time of Ken’s death. In other words, in its first 14 years the Fund had paid out in scholarships almost as much as the original gift and the Fund had grown to almost half again the original amount.
The Fund will continue to award valuable scholarships year after year, helping young people pursue further education. With reasonable earnings on investments, the balance in Langford Family Scholarship Fund will continue to grow for generations to come.
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