The Endowment Program

WHAT IS AN ENDOWMENT? An endowment is a permanent investment in the future of the
Panama City Beach Library. Endowment funds are invested rather than used as cash for
immediate needs. The amount given by the donor (the “principal”) is never spent. A portion
of the earnings from the endowment fund is distributed annually for the donor’s intended
purpose (i.e., books for the PCB Library). The undistributed earnings stay in the principal of
the fund. At the time the donor makes a gift, the Foundation prepares an agreement which
documents the donor’s intended use of the endowment and the Foundation’s administration
of the fund.
WHO INVESTS THE ENDOWMENT FUNDS? The Board of Directors of the PCB Library
Foundation sets an investment policy for the endowment investment pool and chooses
investment managers to invest the funds.

HOW MUCH IS MADE AVAILABLE FOR DISTRIBUTIONS? The Board of Directors of the PCB
Library Foundation establishes policies to determine the amount of the endowment that is to
be made available to be awarded from endowment earnings.

WHAT IS THE MINIMUM FUNDING LEVEL FOR AN ENDOWMENT? The minimum funding level
for a named endowment is currently $5,000. Donors can choose to spread their contributions
over a period of up to five years.

STEPS TO CREATING AN ENDOWMENT:

1. Initiate a conversation with a board member of the PCB Library Foundation.
2. Discuss ways of creating an endowment: a) cash; b) donation of property; c)
required distributions from IRAs or 401k’s; d) will or bequest; e) trust.
3. Review legal agreement for creating an endowment with the PCB Library Foundation.
4. Finalize legal agreement: a) name of endowment; b) purpose of endowment.
5. Make first contribution to the endowment fund.

PANAMA CITY BEACH LIBRARY FOUNDATION, INC.
12500 Hutchison Boulevard
Panama City Beach, FL 32407