FAQs

The Catholic Foundation of Eastern Pennsylvania is an independent 501(c) public charity benefiting Catholic parishes, educational institutions, and non-profit organizations in Berks, Carbon, Lehigh, Northampton, and Schuylkill Counties.

Have a question for the Catholic Foundation of Eastern Pennsylvania? Please browse the Catholic Foundation FAQs below. If you do not find the information you are seeking, please contact us.

FAQs about the Catholic Foundation of Eastern PA

FAQs About Endowment Funds, Planned Giving and Wills

Are the Catholic Foundation of Eastern PA assets separate from Diocesan funds? 

Yes, the Catholic Foundation of Eastern PA is a 501(c)(3) that is a separately incorporated organization and independent of the Diocese. Funds with us can only be distributed to the beneficiaries named in each endowment or donor designated fund. 

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Are wills only necessary if you have significant wealth or property?

Wills serve many purposes beyond distributing assets. With a will, you can appoint guardians for your minor children, designate caretakers for your pets, leave instructions for managing digital assets, specify your funeral wishes, and more. Additionally, having a will can save your loved ones from the time, expense, and stress of lengthy probate court proceedings.

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Do you need a will if your family knows your wishes?

Even if your family is aware of your wishes, they cannot legally make decisions on your behalf without a written will. A court will make these decisions based on local laws, potentially leading to a lengthy and costly process for your loved ones. When you have a will, you have a say in protecting and honoring all that matters in your life.

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Does the Foundation charge a fee for its services? 

After a fund is established, partners are charged an administrative fee based on a sliding scale of no more than one percent of the total of all the funds in its portfolio. The admin fee goes back to serving our partners with financial reporting, investment, marketing, fundraising, and legal services. It covers our costs so we may serve our partners better.

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Does the Foundation displace my lawyer and financial advisor? 

The Catholic Foundation of Eastern PA does not displace your lawyer or financial advisor. We work in partnership with professional advisors such as accountants, estate planning attorneys, and financial planners to create a charitable giving component that works with your financial and estate planning.

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Does the Foundation offer general philanthropic guidance?

Yes. The Catholic Foundation staff can help guide you whether you are just starting to think about your charitable legacy, or you are an experienced philanthropist seeking to learn about new ministries and nonprofit organizations to support. We will work with you and your legal and financial advisors to develop a successful and satisfying legacy plan that supports your favorite Catholic causes.

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How are endowment funds invested?

The way in which endowment funds are invested is of the highest importance to us. The Catholic Foundation Board, in conjunction with its investment advisory firm, established an investment policy to guide the investments of our funds, and all funds are invested in accordance with the U.S. Conference of Catholic Bishops’ guidelines. For more information on how our endowment funds are invested, please click here.

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Is it possible to donate to the Foundation anonymously?

Yes, donors to the Foundation may request that their gift remain anonymous.

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Is writing a will a lengthy, complicated and expensive process?

While this is something that may have been true once upon a time, this no longer has to be the case today. For expert advice, please consult with an estate planning attorney.

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Your estate planning attorney can help you with effective planned giving strategies, include establishing a fund with the Catholic Foundation of Eastern PA, and then naming the fund as the beneficiary of your charitable bequests. You can adjust the terms of the bequest anytime during your lifetime to reflect changing charitable priorities.

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What are the benefits of working with the Catholic Foundation? 

The Catholic Foundation of Eastern PA provides a number of benefits to our institutional and individual donor partners, including:

  • Catholic values investing
  • Independence and protection of intent
  • Planned giving (gift in a will, IRA and insurance beneficiaries)
  • Tax benefits

We also provide for parishes, schools and ministries, we provide stewardship services to help you market and grow your fund to generate future income to fulfill your mission forever.

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What happens to the fund(s) after my lifetime?

All funds are set up with spending guidelines that generate distributions in perpetuity to the beneficiaries of the fund. The distributions continue after a partner’s death. It’s like your weekly envelope to your parish or annual gift to your alma mater will continue after you are in heaven. 

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What if I have a family foundation already?

While private foundations allow you to maintain long-term involvement with your charitable assets, they often are time consuming and costly to maintain. In add, you are required to distribute at least five percent of your net investment assets or you will be subjected to IRS penalties, need to file 990s and need to maintain investment oversight.

We have had partners who have transferred their private foundations into one of the Catholic Foundation’s fund options. Be it an endowment, donor designated or donor advised fund (DAF) , partners can enjoy the same benefits of a private foundation, but without the expense incurred by operational and IRS reporting requirements. 

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What is an endowment fund?

An endowment fund is invested to produce a long-term source of income for a charitable organization. These types of funds are created with charitable contributions and can be fashioned to serve a specific purpose, as defined by the donor. For example, a scholarship can be a specific endowment’s purpose. Endowments can also provide unrestricted general support for an organization. Usually, an endowment is structured so that the principal amount is kept intact while investment income is made available for use in perpetuity.

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What is planned giving?

Planned giving is a way of making charitable contributions through customized endowment gifts. There are a variety of charitable giving options that enable donors to provide for both their families and their favorite Catholic cause, while enjoying tax and income benefits. The Catholic Foundation assists donors and their tax/investment advisers in customizing an endowment gift that will only support the Catholic organizations or programs of their choice.

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What is the Catholic Foundation of Eastern PA? 

The Catholic Foundation of Eastern Pennsylvania is a 501(c)(3) nonprofit foundation. Established in 2013, the Foundation is independent of the Diocese of Allentown. We assist Catholic organizations and individuals in creating endowment funds to provide lasting financial support for parishes, schools, and other ministries.

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Who can work with the Catholic Foundation of Eastern PA? 

The Catholic Foundation of Eastern Pennsylvania empowers all Catholics of The Diocese of Allentown to become philanthropists. You don’t have to give a way millions of dollars to be a philanthropist. Your charitable giving only needs to be organized and thoughtful at a level that is meaningful to you to make an impact. And when your fund is set up, anyone can make a donation to it, at any level.

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