An endowment gift is a deeply caring way for donors to reach into and positively affect the future, and is a surprisingly simple concept. The word “endow” means “to provide an income.” An endowment gift to Sentara RMH provides an income, year after year, for a specific need while the endowment remains intact to earn funds for future years.
How is this done? When a donor makes a gift to an endowment fund, the gift is invested in stocks, bonds, and other securities. This investment produces income each year, depending on the return on the investment.
The annual income from the endowment fund is then used in several ways. First and most important, 50 percent of the annual income is used for the need specified by the donor. This could be the Sentara RMH Hahn Cancer Center, Hospice, or any other number of needs the hospital fulfills. Forty percent of the income is placed back into the endowment fund to help it grow. And the final 10 percent is used for expenses in administering the endowment program.
So the endowment continues to grow and at the same times helps meet current needs with an annual gift.
For a commitment of $50,000 or more, a donor may have a named endowed fund established in their honor. The donor may also specify the use of the funds, provided the designation is in accordance with hospital policy and needs.
For more information on endowment gifts, call Cory Davies in the Foundation office at 540-689-8541.