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The initial gift is invested for at least one calendar year, and the earned income can then be disbursed annually for the specified charitable purpose(s). Over time, the gift grows and the charitable donations can far exceed the amount of the donor’s original gift. These funds provide an ongoing source of funding, ensuring community benefit for years to come.
Non-Permanent funds are not invested, so they act more like a checking account for charitable organizations and individuals who seek to benefit the community. The fund balance can be replenished with donations or spent out until the fund is ready to be closed. Gifts to these funds are tax-deductible as long as no goods or services were received in exchange for the contribution.