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Eternal Money for your

Temple

Hindu Heritage EndowmentKapaa, HI

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Why does a mandir need an endowment?

• To insure its continued existence into the future

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Every major university has an endowment

• Yale University has a 15.2 billion endowment

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How can an endowment help your temple?

• Initially provide extra income for the temple

• When the endowment reaches a certain size, it can fund the annual budget of the temple

• As the endowment principal increases, grants can be used for initiating or expanding new programs and ideas

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Other major religions have endowments

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Who and what is Hindu Heritage Endowment?

• HHE is a USA based, public charitable trust created by Hindus, for Hindus.

• The staff of HHE is a group of monks of Kauai’s Hindu Monastery.

• HHE was created to maintain permanent endowments for Hindu projects and institutions worldwide.

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• HHE currently holds 65 individual funds that benefit temples, ashrams, monasteries, orphanages, homes for the elderly and distribution of Hindu books and literature.

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How does a mandir board of trustees create an endowment for their temple with HHE?

• An endowment is easy to set up. It can be done on the phone and e-mail by answering a few simple questions.

• There are no fees to create an endowment with HHE.

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Who gives to the temple endowment, and what kind of donations can be expected?

• Devotees of the mandir can give to their temple endowment online with a credit card on a one time, regular or recurring basis at www.hheonline.com.

• Mandirs are encouraged to list these donations along with their normal donations in the temple newsletter.

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Devotees can give major donations and feel confident about their gift

• HHE endowments for mandirs provide a safe and secure place for temple devotees to give major donations through such planned giving options such as wills, life insurance and charitable remainder trusts. (They may not feel comfortable putting a $100,000 inheritance check in the temple hundi.) Donors feel confident that their major contribution will benefit their family and future generations forever.

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Financial security for the mandir

• Placing these large donations in a temple endowment can provide a safeguard against the changes in financial priorities of the temple and the fluctuating extremes of the marketplace.

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How are contributions invested?• All contributions to an endowment are permanently invested and professionally managed by Halbert, Hargrove/Russell Investment Counsel.

• Interest, dividends and investment gains are divided between the 65 individual funds according to the percentage of each principal amount.

• Endowments are invested in a broad portfolio of marketable securities to provide a regular grant each year plus provide for some growth of principal to offset inflation.

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The first quarter 2006 asset allocation for HHE.

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What is the expected rate of return of

investments? Net total return goal: 8.7%

How does each fund benefit from investments? Grants to endowments 4.0% Remains with principal of each fund 2.5% (to offset inflation)

What are the investment fees? HHE administration fees 1.0% Investment manager & councilor fees: 1.2%

Note: Since Dec. 31, 2003 to Dec. 31, 2005 the principal has grown 3.5% for those two years vs. a target of 2.5%.

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When the subject of creating an endowment for a

temple comes up among temple trustees, it is often heard:

“RAISING FUNDS FOR AN ENDOWMENT IS TOMORROW. WE NEED THE MONEY NOW.”

Common Situation

A major donor to a temple has retired and gone back to live in India, and at the next meeting of the board of temple trustees someone brings up the idea of creating an endowment for the temple and getting a planned giving program started. Some trustees argue that the need for outright funds is so pressing that the temple’s personnel and resources are stretched too thin to handle both outright and planned giving. The majority agree with them.

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Discussion

• The temple board’s focus on outright cash support is quite understandable under the circumstances. However, one of the basic responsibilities of a trustee is to plan for the future stability of the temple as well as for its current programs. To build a pipeline of future money through an endowment and a planned giving program is to help ensure the continuation of the temple by reducing its dependence on the fluctuations of hundi offerings, annual contributions and one-time donations.

• When it is done right, there is no competition between giving for immediate needs and giving to the endowment. Current giving comes from the normal sources of income such as the hundi, archanas, puja sponsorships and festivals. Giving to the endowment comes from the assets of devotees such as wills, life insurance and charitable remainder trusts.

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Summary

• Hindu temples need endowments to insure their future

• The purpose of an endowment is for perpetual financial independence

• Endowment grants can eventually fund the entire temple budget

• HHE is a trust for Hindus managed by Hindu monks

• HHE currently has 65 individual funds

• HHE endowments are easy to set up

• Endowments provide a safe, secure avenue for major gifts from temple devotees such as wills, life insurance and charitable remainder trusts

• HHE funds are professionally managed and invested in a broad portfolio

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• HHE investments can expect 8.7% rate of return

• HHE funds grow at a minimal of 2.5% to offset inflation

• Grants to endowments average 4% and higher

• Investment fees are 2.2%

• Immediate needs come from normal sources of income

• Endowment income comes from assets such as wills, life insurance and charitable remainder trusts

• It is a basic responsibility of temple trustees to plan for the future financial stability of the temple