Donors who wish to make endowed gifts seek institutions with a
strong charitable mission, tradition and future. Rockford
Health System, the region’s oldest and largest health care
institution, has been the leader in caring for area citizens since
our founding in the 1880’s. From the tiniest miracle preemie
baby to our community’s remarkable centenarians – and all of us in
between – Rockford Health System provides superior care to thousands
of patients every day. We touch people at times of greatest
need – from the joy of bringing new life into the world, to the
challenge of helping families deal with a loved one’s traumatic
injury, to the focus of fighting disease after a frightening
diagnosis. We have been here for over 100 years, growing and
changing with medical advances. We are strong and our donors
can be rest assured that their gifts will continue to serve many,
many future generations and their health care needs.
At Rockford Health System, our endowment donors ensure that funds
are available now and in the future to help caregivers learn about
new treatments and technology, to purchase new equipment or to fund
Through the Rockford Memorial Development Foundation, a number of
named endowments already have been established to provide ongoing
benefits to a variety of programs. We salute the foresight and the
philanthropic spirit of our endowment donors!
Some donors bestow endowed gifts during their lifetimes, enabling
them to observe the funds at work from year to year. Others
choose to fund the endowments through their estate plans as they
establish a lasting legacy.
The Rockford Memorial Development Foundation invites you to
consider the possibilities of creating your special legacy through
an endowed gift to Rockford Health System. The Foundation offers a
number of endowment programs to meet your specific interests.
We welcome your questions and ideas, and we encourage you to discuss
your giving plans with your financial and tax advisors.
Named Endowed Chairs
These prestigious endowments of $500,000 or more establish funds to
support the physician chairs of specific medical departments.
Carefully chosen by Rockford Health System for excellence,
physicians invested with endowed chairs are greatly honored by this
special distinction. Annual distributions generated by the endowment
could fund the department chair’s administrative stipend or could be
earmarked for special projects. A powerful tool in physician
recruitment and retention, endowed chairs are respected as a mark of
the institution’s tradition of excellence and commitment to the
welfare of the patient. Endowments continue in perpetuity unless
otherwise specified by the donor. Donors choose the specific medical
department to be endowed and the name of the endowment.
Named Permanent Endowments
Endowed gifts of $250,000 or more establish permanent endowments,
named in honor of the donor. The donor may determine how the
annual distributions from the endowed fund will be spent – whether
to meet the greatest special need identified from year to year, to
establish a scholarship, to benefit a particular medical department
or to fulfill another specified purpose. These endowments
continue in perpetuity unless otherwise directed by the donor.
Donors choose the purpose and structure of the endowment as well as
how the endowment should be identified.
Named Term Endowments
Donors may choose to create a named endowment with gifts of $25,000
or more that will provide interest income for a specific purpose for
a term of years. Donors direct the use of endowment proceeds –
to meet unrestricted needs, fund a scholarship, benefit a specific
medical department or other intention. The endowment is named
as the donor chooses.
Donors may choose to contribute gifts of $1,000 or more to existing
endowments managed by Rockford Health System. Such gifts
increase the endowment principal, thereby generating additional
investment growth for the endowment’s specified purpose.
Answers to Frequently Asked Questions about Endowed
As you consider the possibility of endowed giving at Rockford Health
System, you may have questions. We’ve listed some commonly
asked questions here, but encourage you to contact the Foundation
Executive Director at any time with your specific questions or
How does Rockford Health System manage its endowments?
Endowed funds are governed by the Rockford Health System investment
policy and are stewarded by the Investment Committee of the Rockford
Health System Board of Directors. The endowed funds are pooled
with other funds invested on behalf of the Foundation. The
investments are managed by a team of professional fund managers,
chosen by the investment committee for their expertise and proven
performance in specific investment categories. The Board
investment committee, with the finance staff of Rockford Health
System, monitors investment performance on a continuous basis.
Are there tax advantages for creating an endowment?
In general, charitable giving typically provides advantages against
either current tax obligations or the taxability of your estate.
Different gift structures may yield different tax advantages.
Only a specific examination of your tax situation by a legal or
financial professional, coupled with your charitable giving
intentions, will determine what makes most sense for you.
Can the Foundation help me find a tax or financial
The Foundation works with a number of highly qualified attorneys and
financial advisors who can provide you with expert, confidential
advice about your charitable giving. As you determine the
financial structure of your gift, the Foundation can work with you
to identify the ways your gift will be put to work to benefit
I have an idea for an endowed program, but it doesn’t
quite fit the descriptions you have listed here.
Donors have great ideas! We’d love to talk to you and see
how we might put your idea into action. Our physicians and
clinical managers can help describe the needs they see and how your
gift might help.
In general how much income does an endowment generate?
The Foundation’s Endowment Policy and Distribution Guidelines*
provide for an annual distribution of up to 5% of each endowed
fund’s market value. Additionally, any growth in market value
over 5% will remain invested to grow the corpus of the endowment.
The combination of a stable source of income year after year,
plus the opportunity for growth is what makes endowed funds such a
powerful tool for accomplishing important work over the long term!
Here’s an example of how this works:
In year one an endowed gift of $300,000 increases 7% in market
value to $321,000. So at the end of the year, 5% of that value
– $16,050 – is distributed for expenditure. That leaves
$304,950 invested in the endowed fund.
Given a second year of 7% growth, the market value would increase
to $326,296.50. That year’s 5% distribution would be
$16,314.83 and a total of $309,981.67 would remain invested in the
*For complete information, please ask for a copy of the Endowment
Policy and Distribution Guidelines. Please note, distributions
will not be made if they would bring the value of the endowment
below the value of the original gift.
Do endowed gifts qualify me for membership in the
Triumvirate Recognition Society?
As you fund the principal of the endowment, those gifts are
credited toward membership in the Triumvirate Recognition Society.
Irrevocable planned gifts also receive gift credit toward
Triumvirate membership at the various levels. Permanent
Triumvirate membership is awarded to those whose cumulative gifts
equal $10,000 or more.
Can you provide me with a sample agreement as I consider
making an endowed gift?
Yes. We have sample agreements available for each of the
endowment programs listed in this brochure. Also, we can draft
a special agreement for your review if you have specific information
you would like to include. For a copy of a sample agreement,
please contact the Foundation Executive Director.
The Rockford Memorial Development Foundation, a 501 (c) (3)
not-for-profit organization, is the charitable giving arm of
Rockford Health System. Gifts to the Foundation are tax
deductible to the extent of the law.
Rockford Memorial Development Foundation
2400 N. Rockton Ave.
Rockford, IL 61103