Endowment Giving

Endowment Giving

Make a lasting impact.

little girl and grandfather with two horses (Clovis photoshoot by Taylor Pettigrew)

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Creating an endowed fund or giving to an existing endowed fund managed by the American Quarter Horse Foundation ensures the Foundation can continue its mission to preserve our horse’s legacy and further the well-being of the American Quarter Horse and the Quarter Horse family. 

What is an endowment?

Endowments are a powerful investment in the American Quarter Horse’s future as they deliver a dependable, perpetual source of funding. When you establish or invest in an endowment the funds are invested instead of being spent. Each year, a percentage of the return is made available to be directed toward the area of your passion.

What is the importance of an endowment fund?

Endowments grow over time through long term investment returns and additional contributions. These returns provide annual distributions in the form of a spending policy. This source of funding can be invaluable in uncertain economic times when fundraising can be more challenging. During times of strong investment returns, funds can grow significantly allowing for reinvestment and further growth of the fund. Endowments stabilize the Foundation’s ability to fulfill its mission in perpetuity, thus giving donors confidence that the programs they support will have longevity and long-term impact that grows over time.

Assuming annual 6% target investment growth and 5% spend, annual distribution grows from approximately $5,000 to $12,000 over 80 years.

What is a named endowment?

When a donor chooses to fund an endowment at the minimum levels outlined below, they are afforded the opportunity to name their endowed fund.  This leaves a lasting legacy of support for the donor’s program of passion. Donors who establish named endowment funds receive annual reports highlighting the financial and programmatic impact of their fund.

Minimum levels to establish an endowment:

  • Equine Assisted Services

$250,000

  • Equine Research

$250,000

  • Scholarships

$100,000

  • Museum Programs

$500,000

How does an endowment fund distribute funding?

The American Quarter Horse Foundation maintains an endowment spending policy of up to five percent (5%) of the trailing 60-month average market value of the invested funds (including up to 0.5% management fee).  The 60-month period of calculation is utilized to smooth the impact of fluctuations in market returns thus enabling more consistent fund distributions. When establishing your own named fund, the annual distribution will include a 0.5% endowment administration fee. This helps the Foundation recoup its expenses for investing, monitoring, and awarding funds from the endowment. 

When will the fund I create begin distributing support for the program I choose?

The Foundation allows individuals to pledge funding support for a named endowment over a maximum of five years.  Once the fund meets the minimum balance outlined above the funds remain invested for one year to allow for the minimum growth necessary to distribute funds.

Can I supplement my pledge payments with a spendable cash contribution if I would like to see immediate distributions occur?

Yes! When you establish an endowed fund, staff will work with you to identify a “fast track” payment option which allows you to fulfill your pledge payment with a permanent contribution coupled with a temporarily restricted gift which will pay out the first scholarship or grant while the fund grows.

For additional information on endowment fund impact, policies, and investment oversight, see the AQHF Financial Overview.

Meet some of our endowment fund donors!

 

To learn more about the many ways you can invest in the future of the American Quarter Horse, call 806-378-5029 or email foundation@aqha.org.

Tax-Deductible Contributions

The American Quarter Horse Foundation’s EIN (Employer Identification Number) is 51-0187823. The American Quarter Horse Foundation (“the Foundation” or “AQHF”) is the related philanthropic organization of the American Quarter Horse Association and is classified under the Internal Revenue Service Code as a tax-exempt 501(c)(3) charitable organization eligible to receive tax-deductible contributions. It is also classified as a 509(a)(3) Type I support organization with the American Quarter Horse Association. Donations are tax-deductible to the full extent of the law.