What is the Catholic Foundation of Southwestern Michigan (CFSM)?

The Catholic Foundation of Southwestern Michigan (CFSM) is a separately incorporated, permanent endowment vehicle designed to provide for the financial stability and sustainability of Catholic parishes, schools and ministries in the Diocese of Kalamazoo.

What is the purpose of the CFSM?

The Foundation serves to unite Diocesan entities in faith and solidarity, provide socially responsible investment of endowed funds and invite all Catholics into communion with others while becoming part of a much larger spiritual vision. It serves as a repository to maintain and pool endowed funds and provide opportunities to create new endowed funds, all of which are administered by the Foundation.

What are the benefits of working with the CFSM?

The Foundation handles all administrative management for individuals, parishes and schools with careful stewardship of endowed funds. By shouldering the administrative
burden, the Foundation makes it easy for charitable entities and individuals to establish and benefit from endowment funds.

What is an endowment?

An endowment is a permanent fund from which earnings can be used in accordance with the wishes of the donor. The fund’s principle is never spent. The principle includes the initial contribution given to establish the fund, as well as any additional gifts to the endowment. The assets of the Foundation grow through sound and socially responsible
investment policies and from additional gifts.

Why establish an endowment?

Excellent programs require substantial, consistent and permanent funding. An endowment provides a stable base for that funding. In general terms, by creating or giving to an endowment, an individual can take another step in living out a life of stewardship in gratitude for God’s many gifts to us. Stewardship is not a one-time act of giving, but rather a way of life. As good stewards, each of us plays an important role in perpetuating Christ’s work in the Church. Fulfillment of the Church’s mission is dependent on the sustained support of the faithful of the Diocese of Kalamazoo.

What oversight is there for the funds?

Management of funds includes oversight from Michigan Catholic Conference, National Catholic Investment Pool, CapTrust investment Advisers, Northern Trust Custodian and the Foundation Advisory Board. 

What is the distribution policy?

The Foundation distributes 4% of the account’s/fund’s investment market value annually. Determining the investment market value of each account/fund is accomplished in two different ways depending upon its age. Member funds may choose to reinvest the distribution amount or receive the amount to be used in accordance with the established purpose of the fund.