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Recent donation highlights benefits of trusts
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April 26, 2024By Rob Herbst
The Catholic Week
MOBILE — In celebration of Archbishop Thomas J. Rodi’s 75th birthday, principals from Catholic schools in the Archdiocese of Mobile delivered a check of more than $8,500 as a birthday gift that will help those in need throughout the archdiocese.
Archbishop Rodi recently set up a charitable trust through The Catholic Foundation with the sole purpose of supporting food pantries at Archdiocese of Mobile parishes.
See below for more information on charitable trusts and The Catholic Foundation.
Q: What is a charitable trust?
A: A charitable trust is an irreversible trust established for charitable purposes designed to operate indefinitely by dispersing a portion of invested funds every year. It is a gift that keeps on giving.
Q: What is The Catholic Foundation?
A: Established in 2010 by the Archdiocese of Mobile, it is a separately incorporated nonprofit, tax exempt 501c3 organization. Its purpose is to encourage financial stewardship and generosity by providing an avenue for faith-based giving that will sustain and enhance Archdiocese of Mobile parishes, schools and ministries for generations to come.
The Catholic Foundation serves as custodian of not only charitable trusts, but also endowed funds and reserved funds.
Q: What are the differences among these accounts?
A: Endowed Funds are funds created in perpetuity, of which the principal is never invaded. The principal is the initial gift given to establish the fund. Endowment funds grow through sound investment as well as additional donations. Annual distributions are made from investment earnings according to donor intent.
Charitable Trusts are funds invested in The Catholic Foundation but governed by a separate board of trustees for the Charitable Trust.
Reserve Funds belong to a parish, school or ministry and are invested in The Catholic Foundation. The funds can be withdrawn as requested by the fund owner
Q: Where are the funds invested?
A: The Catholic Foundation Board establishes and oversees the investment policies to grow funds while safeguarding principal and adhering to the socially responsible investment guidelines set forth by the U.S. Conference of Catholic Bishops. Funds in the Catholic Foundation are invested according to Catholic values. The Foundation employs the services of professional investment advisors, recommended by the investment committee, to determine investment strategies and asset allocation.
Q: Why are distributions 5 percent?
A: Distributing 5% of a rolling quarterly average allows the corpus or initially invested funds to continue to grow while providing support perpetually to the beneficiaries.
Q: Who makes up the board of trustees for a charitable trust?
A: The person establishing the trust designates who is on the board of trustees and will distribute the funds. In the case of Archbishop Rodi’s trust to benefit parish food pantries, the vicar general and vicars forane (regional deans) of the Archdiocese of Mobile are designated as members of the board of trustees and will distribute 5% of the funds annually.
Q: Can the person who establishes the charitable trust or endowed fund withdraw any funds or control where the funds are distributed?
A: No.
Q: Can the Archdiocese of Mobile claim funds?
A: No, not as long as the parish or ministry for whom funds are invested are viable and functioning. As a legally established account in the Catholic Foundation, the funds invested by the charitable trust, parish or ministry of the Archdiocese of Mobile cannot be used in any way other than what was specified when the account was established.
Q: How much money is needed to establish a charitable trust or Endowed Fund in The Catholic Foundation?
A: $5,000 is the requested minimum.
Q: What can a charitable trust endowed fund in The Catholic Foundation aid?
A: Any Catholic parish, school, or ministry within the Archdiocese of Mobile. It can be for as specific a purpose as the donor wishes. The donor is only limited to his or her imagination as long as it benefits a parish, school or ministry of the Archdiocese of Mobile.
Q: How many accounts does The Catholic Foundation have?
A: There are currently 172 accounts.
Q: How does one set up a trust or donate to an existing trust?
A: Visit catholicfoundationalabama.org /or contact Executive Director Shannon Roh at
251-434-1556 / [email protected]
