What is a Parish Endowment & Why it Matters

Are you familiar with an endowment? Imagine a gift that gives in perpetuity! It's true and its possible. And many parishes throughout the Diocese of Winona-Rochester already have one with us!

If you're new to endowments, I've put together a few of the basics for you.

What is a Parish Endowment?

An endowment is a permanent, invested fund that generates income year after year. It’s a lasting financial foundation that supports your parish’s mission, ministries, and maintenance—today, tomorrow, and for generations to come.

But how? It's possible to see income annually from an endowment become the original principal or corpus is never spent. While the earnings from investments are used year after year to support the organization’s mission. 

Think of it as planting a tree:

• You don’t chop it down—you protect the trunk (the principal or corpus).
• You harvest the fruit—the earnings, which can be used for scholarships, ministries, building maintenance, salaries, or other needs.
• It keeps producing year after year, ideally forever if well stewarded.

Why It Matters

• Sustains the Mission: Regular disbursements help fund liturgy, education, outreach, and pastoral care—even during economic downturns.
• Reduces Dependence: Less reliance on weekly collections and capital fundraising means more freedom to focus on ministry.
• Supports Future Generations: Endowments ensure a stable future for your parish’s children and grandchildren.
• Honors Legacy Giving: Offers a meaningful way for parishioners to leave a legacy aligned with their values and faith.

Let's Talk Numbers

Let's take it a step further with HOW? Can an endowment really serve a Catholic organization in perpetuity?

Resounding yes! If you work with a fiduciary like us to care for your funds, the image below shows what a $100,000 endowment could look like in 50 years: Over $13,000 in annual grants with nearly $400,000 granted cumulatively. And, $369,000 still in the bank.

 

How We Help

At the Catholic Foundation of Southern Minnesota, our focus is serving local Catholic organizations to the benefit of local Catholics. This past fiscal year, we distributed nearly $320,000 through 392 individual grants across 42 different cities in our diocese. What a blessing to pour into Southern Minnesota thanks to the generous donations of those who came before us!!

As another part of serving our Catholic community, we offer no-cost planned giving seminars annually for all parishes that invest with us, helping you to educate parishioners on how to plan for legacy giving like endowments. Then when it's time to receive an endowment from a parishioner, we have templated contracts you can use and then we hold the funds until you're ready to have them distributed. 

Interested in learning more? Reach out today.

Elizabeth Williams, Executive Director
507-218-4098   |    info@catholicfsmn.org