THE INDEPENDENT CATHOLIC FOUNDATION For The Diocese of Altoona-Johnstown

VOL. 13 NO. 1 Summer 2013 Greetings from the President and the Executive Director We welcome you to this update of the Indepen- vestment portfolio. Additionally, we have had the program for the Catholic High Schools. We hope dent Catholic Foundation. We are happy to have opportunity to visit many parishes. The invest- you will enjoy this edition of the FOCUS and that this opportunity to share news about our good ment return for calendar year 2012 was over it will serve as a “thought starter” for ideas on works, discuss our successes and provide ideas 10% and continues to show strong growth in estate planning. Please feel free to contact the regarding how to support your favorite ministry 2013. We have been truly blessed. In our last Foundation office or any Trustee with questions or parish. This has been an exciting time since newsletter we announced the $500.00 “match- or to explore how we may assist you. our last newsletter. We’ve moved the Founda- ing grant” initiative and we are pleased that sev- tion office, established many new endowments, eral parishes have taken advantage of it. It is still received over $1.2 million in contributions and available and has been expanded to any Catholic Vincent J. Barbera, Esq., President reached the milestone of $20 million in our in- Elementary School. We also announced a grant Bill Hiergeist, Executive Director.

Foundation contribution can be made by an individual, their be put into the general fund for current use, with family or a group of friends or employees. Member- the second half being put into an endowment that Honor Society ship can be funded over two years with member- will support the Foundation forever. Recognition ship beginning when fully funded. The honoree can will include a member listing on separate page on The Foundation is continuing to promote an honor be living or deceased, and of course someone can the Foundation web-site and a mass will be offered society within the Foundation named the Saint Si- join in their own name. Named after Saint Simon annually for members’ intentions or for their re- mon Society. This society will recognize an indi- of Cyrene who helped Christ carry his cross on the membrance, in the case of a deceased member. The vidual for whom a contribution to the Foundation way to Calvary, membership will help the Founda- mass will be offered annually in May, in which the has been made in the amount of $1,000.00. This tion in two ways. One half of the contribution will feast day of Saint Simon is celebrated.

Hazenstab Endowment in any amount. The participating siblings thought this was a great way Created For to honor their Dad and Mom and St. John the Evangelist permanently support something (Lakemont) that was so important to their par- The John and Kathleen Hazenstab Endowment ents. This new endowment brings for St. John’s was recently created to benefit the to over 200 the number of endow- school and parish. The endowment was funded ments managed by the Foundation. by some of the children of John and Kathleen This has been a very busy year for who were life-time members of the parish. All the Foundation with 11 new en- of their children were graduates of St. John’s dowments being added since July Elementary School and Bishop Guilfoyle High 1. These new endowments benefit School, a fact that made John and Kathleen es- two of the Catholic High schools, three of the Catholic Elementary Shown reviewing the completed paperwork pecially proud. This is a permanent endowment are the participating Hazenstab siblings. with the annual distribution of earnings divided Schools, several parishes for main- tenance and other parishes for (L to R): Mary Jane (Hazenstab)Wyland, Jack and between the parish and school. Anyone may Dennis Hazenstab and Judy (Hazenstab) Hiergeist contribute to this new endowment at any time, their general needs. Page 1 The Independent Catholic Foundation For The Diocese of Altoona - Johnstown

Bishop Mark Bartchak Bishop Guilfoyle Donor advised funds: Scholarship Class of 1978 These are individual endowments created with Created for Establishes Scholarship provisions for the person(s) or family who cre- ated the endowment to determine where the St. Joseph’s Academy BG’s Class of 1978 has done something “ahead of annual distribution goes. The recipient or ben- its time”. Several scholarships from the graduating eficiary may change each year, or there may be The Advancement office and the Board of Trust- classes of Bishop McCort and Bishop Guilfoyle High multiple beneficiaries with each distribution. A ees at Saint Joseph Catholic Academy in Boals- Schools (actually Altoona Catholic and Johnstown donor advised fund offers the opportunity to burg recently announced the creation of a schol- Catholic) have been created to celebrate their re- easily create a low cost, flexible method for arship endowment for students at the Academy. spective 50 year milestone of graduation. The BG charitable giving as an alternative to direct giv- It will be in honor of Bishop Mark and named Class of ’78 is doing the same thing only 15 years ing or the costly and cumbersome private family the “Bishop Mark Bartchak Scholarship early! The class members involved thought this was foundation. Donors receive maximum tax ad- Endowment for Saint Joseph Acade- a great way to honor their school and help provide vantages with the administrative duties and ex- my”. This permanently endowed scholarship is the same opportunity for a great education that penses passed on to the holder of the endow- being funded with 100% participation of faculty they had received. The class members even held a ment (ie: Independent Catholic Foundation), and staff from the school. They felt it was a fitting “Zumbathon” as a fund raiser. This endowment was and the donor may remain anonymous if they written so that a $500.00 scholarship will be given way to thank the Bishop for his support and guid- choose to do so. Beneficiaries of the annual each year to an incoming freshman who has gradu- ance. Bishop Mark who has received all of his for- distribution must be approved by the Board of ated from a Blair County Catholic mal education in Catholic schools, from elemen- Trustees and must align with the teachings of Elementary School. They also tary school to his post graduate studies has long the Catholic Church. The Foundation Gift Ac- structured the finances so supported Catholic education and understands ceptance Committee encourages contributions that it will begin with the its unique value. This scholarship endowment is of $25,000 or more to begin a donor-advised 2013-14 academic year. managed by the Independent Catholic Founda- fund, but will consider minimum gift/pledge lev- Additional contribu- tion. This is the first endowed scholarship at the els of $10,000 with limits to the number of ben- tions to this endowment Academy, and it joins the approximately 50 other eficiaries required annually. scholarships managed by the Independent Catho- can be made at any time, in any amount through the lic Foundation that benefit the Diocesan Catholic Types of Donor-Advised Funds Foundation. High Schools. With the other 200 endowments held by the Foundation, their combined value is Permanent Endowment: These are per- manently restricted with an annual distribution over $20 million. The awarding of the scholarship Foundation SeekinG as determined by the Trustees; all endowments will be managed by the Academy and will be de- within the Foundation have the same percent- termined through their financial aid and scholar- Scholarship Applications age distribution. Principal cannot be distributed, ship process and will we be awarded to a student The Foundation is seeking applicants for the except as required by law. The Foundation is who exemplifies the mission of St. Joseph’s. Addi- 2013 Welge Scholarship. This scholarship pro- advised by the benefactor each year who the tional contributions to this fund are welcome and vides financial assistance to worthy parishioners beneficiary of the annual distribution will be and can be made at any time, in any amount. They can who are entering their junior or senior year of the Foundation mails out the checks. be sent to the Academy at 901 Boalsburg Pike, college and are a member in good standing of a Provisional or Temporary Endowment: Boalsburg, PA 16827 and reference “Bartchak En- Roman Catholic Parish in Blair County exclud- An Endowment is created that allows the inter- dowment”. Additions to this fund will increase ing Tyrone. The Welge Endowment Scholarship est (annually) and up to and including 50% of the the amount and number of scholarships avail- was established in 1995 to honor Adelaide G. original principal to be distributed. This has all able. Information on this scholarship is available of the tax and expense advantages to the donor (Heverly) Welge. Information and applications through the Development Department at St. Jo- as a permanent endowment. There are stipu- are available at www.icfdaj.org. Applications seph’s Academy. Information on the Independent lations in place for minimum distributions and should also be available at the offices of our Catholic Foundation is at www.icfdaj.org. timing of same. Additionally, there may be provi- Blair County parishes; the application needs sions made for different administrative fees. to be signed by the applicant’s pastor. Ques- tions should be directed to the Foundation of- The details of each situation may vary. For fice at 201-2080 or via e-mail [email protected] . more information, please contact the Founda- Deadline for submission is June 7th. tion office.

The great truth that is too often forgotten is that it is the nature of people to do good to one another. Page 2 Author Marilynne Robinson SUMMER 2013 - FOCUS

An interview Q: Can you offer something now that you could cal ministries in a relatively short period of time is not before? pretty amazing! With the A: A new initiative for us is being able to offer “Do- Executive Director nor Advised Funds”. (See related article on page 2) Q: Another follow up question, where do most of Additionally, we instituted the Saint Simon Society, the funds go? It has been almost 5 years since Bill Hiergeist be- which is used to honor a loved one. A: Over half of the funds are designated for edu- came Executive Director of the Foundation. Re- cational pursuits. By this I mean, scholarships and cently he was interviewed for this edition of the Q: How many endowments are there? support for the independent Catholic High Schools, FOCUS regarding the differences now vs. 2008. A: Currently there are 201 endowments, with sev- support for the Diocesan Elementary Schools and eral more in the process of being finalized. This a couple of endowments that offer college schol- Q: Is the job what you thought it would be? represents a 47% increase in number over the past arships for parishioners. This high percentage for A: It’s better! I’ve been able to visit the parishes, 6 years. education happened not by design, but by peoples’ talk with the pastors and in many cases commit- interest in education when they funded the endow- tee members; making some great new friends. Our Q: A follow up to “how many endowments”, is why ments. Trustees, both past and present have been extreme- do people create an endowment? ly helpful and supportive. They have been able to A: For two main reasons: to honor a loved one Q: What’s next for the Foundation? open some doors for me to help advance our good and/or support a favorite ministry. At a milestone As more people realize the Foundation has become works. It has provided me the opportunity to grow in someone’s life, be it when they pass, reach a sig- the place for people who want to permanently and professionally and in my faith. I’m in the office a nificant anniversary, or other occasion, family or financially support a favorite Catholic cause we will lot, but hopefully with some small changes we are friends will create an endowment for the benefit continue to enjoy this amazing growth. making, I’ll be able to spend more time out visiting of that person’s favorite parish, ministry or passion individuals and parishes. I think we’ve made some such as scholarships. (see related article on page 1). progress “spreading our Gospel” and letting people For a person or family to be remembered because know who we are and what we do. I am extremely someone created an endowment in their name Number of endowments proud of the work we do. which provides an income stream forever to their continues to grow favorite cause, is a powerful expression of love. During the past several years the number of en- Q: Describe the differences now vs. 2008? For example every year the “Smith Endowment” dowments held by the Foundation has enjoyed A: The most significant difference is the size of our provides a scholarship to their favorite Catholic steady growth. So far this fiscal year the Foun- investment portfolio and what that means. When I School. started in 2008, because of the decline in the stock dation has added 10 new endowments which brings the total number to 201. Some of our market, the portfolio had fallen to just over $11 Q: Describe the process for the annual distribution new endowments benefit parishes or a parish million. Now we are over $20 million which rep- of your funds. resents a 75% increase. This astounding growth is A: After the close of our fiscal year on June 30 of school, several parish cemeteries and Bishop due to improved market performance and over $5 each year, we calculate the average value of each McCort and Bishop Guilfoyle Catholic High million in contributions. Because our income is endowment for the past six, six month periods (on Schools. This growth represents a 42% increase derived from a small fee to the portfolio, this has June and December 30th). We multiply a percent- in the number of endowments during the past given us some breathing room. For example, it has age against those values, usually around 4%, and six years. Information on how to establish a new allowed us to offer the “Matching Grant” initiative offer that amount back to the beneficiary named endowment is available on our web-site or at and offer discretionary support to the Catholic when the endowment was created. Our Finance the Foundation office. High Schools and other ministries. Committee recommends the exact percentage to our Board of Trustees for approval. This percentage Number of Endowments is applied equally to all endowments whether they 201 are valued at $1,000 or $1 Million. 191 178 167 155 Q: As a follow up to the previous question, typically 141 how much is available. A: Over the past 5 years we have made available over $2.4 million to the various beneficiaries named in the individual endowments. That’s $2.4 million being offered to various ministries, 98% of which are in the Diocese of Altoona-Johnstown. This year we expect to offer over $700,000 which will set a 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 to new record. Three million dollars given to our lo- April 30

Executive Director Bill Hiergeist Page 3 SUMMER 2013 - FOCUS

Specific bequest:This kind of bequest speci- Foundation office CREATE A Legacy fies an exact dollar amount or specific asset from in your family’s name your estate, such as stocks or bonds be used to Moves create an endowment in your family’s name. Citing growth and the need for more and efficient In Pennsylvania, everyone already has a will! space, the Foundation relocated its office. “This new The state has very specific instructions on how Residuary bequest: This bequest directs space offers more room, the privacy needed when your estate will be divided. If you want to make that either all or a percentage of your estate’s talking to donors and space for additional personnel other plans, you must have a written estate plan residue, what’s left after the other terms of your as our growth continues” noted Executive Direc- that designates how your assets are divided. will have been satisfied, is used to create a per- tor Bill Hiergeist. The Foundation had been renting manent endowment. a suite from a local law firm, and now is enjoying a Of all the gifts you could offer a Catholic cause, space all its own. Visitors are always welcome. one of the most meaningful, and one of the Percentage bequest: A bequest may be easiest to make, is a bequest. A bequest is a expressed as a percentage of your estate. Your gift you pass to your favorite ministry through wishes are guaranteed regardless of whether your will. You first decide what ministry you your estate grows larger or smaller; and these want to support. For example, your parish, a funds are used to create a permanent endow- scholarship to a catholic school, or a catholic ment. ministry such as Catholic Charities or St. Vin- cent DePaul. Then you name that ministry in All estate planning is best accomplished with your estate plans and specify the Independent the help of your attorney, your banker or finan- Catholic Foundation as a depository to create cial planner and the involvement of your family. a permanent endowment. There are several The Foundation can also help determine areas ways to do this and each is slightly different and of need within our Diocesan church or your has different advantages: particular parish.

The world needs dreamers and the world needs doers. T o know even one life has breathed easier because you But above all, the world needs dreamers who do. have lived. This is to have “ succeeded. “ – Sarah Ban Breathnach” – Ralph Waldo Emerson n Separate from, but committed to, The Foundation is an independent entity – legally separatethe from Diocesan the Diocese of Altoona-JohnstownChurch – com- ” mitted to the long-term strength and viability of Catholic institutions within the eight-county diocese. The InDisclaimer all instances it is advisable to speak with legal counsel, Foundation is overseen by a board of trustees comprised of 17 lay men and women. The Diocese (as a legal a Financial advisor and/or a tax consultant. No information entity) and the Diocesan Bishop have no role in the management of the Foundation, which is a 501(c)(3) contained in this newsletter or on the Foundation website nonprofit organization [a public charity]. Endowment funds are owned by the Foundation and can not be attached for Diocesan operating funds or any needs of the Diocese. should be considered legal advice.

For more information: Individuals, businesses, organizations or parishes are welcome to inquire about the Independent Catholic Foundation by contacting any Trustee or our office. Executive Director, Bill Hiergeist can be reached at the Foundation office. For a list of current Trustees, please visit our web-site. All inquires are held in the strictest confidence.

Bill Hiergeist, Executive Director (814) 201-2080 (814) 201-2092 (fax) (E-mail address) [email protected] 3618 Fifth Ave., Suite 1 • Altoona, PA 16602

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