More than 130 nonprofit organizations in Rhode Island, such as Smith’s Castle, Tiverton Land Trust, the Rhode Island Zoological Society, and the Warwick Public Library, have chosen to secure all or part of their endowments by placing them in the safekeeping of The Rhode Island Foundation.

The Foundation believes that virtually every nonprofit organization should have an endowment. Carefully managed and maintained, an endowment will provide a permanent source of support for the organization in perpetuity. Unlike one-time donations to your organization, gifts and additions to an endowment benefit you and the community you serve forever. To use an old adage, an endowment gives you both roots (stability) and wings (the ability to dream).

Investment Philosophy

A minimum transfer of $10,000 is required to establish an organization endowment.

An organization placing its endowment with The Rhode Island Foundation directly benefits from being part of a large portfolio. Because of its asset size, the Foundation is able to work with experienced investment managers, and at a fraction of the expense that an organization operating alone would experience.

The Foundation’s assets are invested in a portfolio of stocks, bonds and cash equivalents. We seek growth in principal over time to preserve the “purchasing power” of the fund.

Note: The Foundation’s investment policy precludes short-term maximizing of investment. Placing money with the Foundation is not comparable to investing it with a mutual fund, for example.

Spending Rule

To ensure that the value of your fund has every opportunity to keep pace with or exceed inflation, while maintaining a steady income, the Foundation has established a spending rule. As the designated recipient of the endowment at the Foundation, your organization will annually receive 4.5% of the fund’s average market value, using a 16-quarter trailing average. The Foundation charges approximately 1% for its services. Any additional earnings increase the principal of your fund.

Contact us

Creating an endowment at The Rhode Island Foundation requires careful thought and planning. Your organization must feel comfortable that, while the fund will always benefit your organization, this is an irrevocable gift that will be managed according to criteria adopted by the Foundation.

For that reason, the Foundation urges you to contact us early in your planning to determine if we can be a helpful partner. We will also require formal documents ensuring that your Board of Directors fully understands the terms of the transfer.

To see a list of nonprofit agencies and organizations that have endowments at The Rhode Island Foundation, click here.

You can also request easy-to-read information about Organization Endowments.  

If you have any questions to discuss in person, or are ready to begin a conversation, please contact Kimberly Butler.