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Endowment Program

To include NMRA in your estate plans (“planned giving”), please read the explanation below, and then print out and fill out the form that follows.

Thank you for your interest in joining the NMRA Legacy Society, and in continuing your support of NMRA’s good work in perpetuity.  The Board of Directors created the NMRA Legacy Society to recognize and publicly thank people who include NMRA in their estate plans.  In support of this process, the Board has also created the NMRA General Endowment Fund.  Experience in other nonprofit organizations indicates that many people who leave a financial bequest want it to go toward something that is relatively permanent – for example, an endowment fund.

I hope you will join me by signing up for the NMRA Legacy Society. The appropriate sign-up form is here.  Fill it out and send it to headquarters after you have made the necessary changes in your estate plan. 

Let me try to anticipate several questions that you may have:

Q.  If someone signs up to be a member of the Legacy Society, do they have to furnish any proof that they have included NMRA in their estate plan?
A.  No, we’ll take your word for it.

Q.  How will members of the Legacy Society be recognized?
A.  A list of Society members will be published at least annually in Scale Rails.  We will, of course, omit people who wanted to remain anonymous from any such published list.   
 
Q.  In general, why do nonprofit organizations establish endowment funds?
A.  The most important reason is to support the work of the organization - not just for one year, or even one generation, but in perpetuity.

Q.  Is the process of including an organization in one’s estate plan complicated?
A.  Normally, it does not have to be complicated.  NMRA does not give legal or financial planning advice, and you should probably check with your appropriate advisor. However, we note that people leaving money to other nonprofit organizations have used one or more of the following devices:

Q.  I would like to learn more about the NMRA General Endowment Fund.  Is it simply a line on an accounting statement?
A.  It’s a lot more than that.  The Fund will operate under the general direction of the NMRA Investment Committee.  There are restrictions on the type of investments that are permissible.  For example, the Fund will not invest in individual stocks and bonds, derivatives, commodities, or real estate.  It will invest in appropriate investment instruments such as index-type mutual funds operated by large well established firms like Vanguard, T. Rowe Price, and Fidelity.  To maintain the fund’s purchasing power despite corrosive effects of inflation, there is also a restriction on the amount that can be spent from the Fund each year.  This will be a maximum of five percent (5%) of the average market value for the previous three years (once the fund has existed for three or more years).    
 
Q.  Will this program replace the annual appeal for contributions?
A.  No.  We’re trying to provide an appropriate “avenue” for people to contribute, regardless of their circumstances or motivation.  Experience shows that most people contribute to an annual appeal to help with current operations.   Most people specify bequests – i.e. they include organizations in their estate plan – with something more permanent in mind.

Q.  I’m familiar with another really large nonprofit organization that encourages elaborate trust arrangements.  Does NMRA plan to do this?
A.  No.  We don’t have the staff to deal with this, and are unlikely to have such a staff in the foreseeable future.  We are trying to “keep it simple” by encouraging straightforward financial bequests – i.e. naming NMRA as one of the beneficiaries of people’s estates.

Q.  Might it appropriate to give my model collection to NMRA when I pass away?
A.  In general, the national organization really isn’t set up to deal efficiently with model collections.  However, many regions and divisions can make constructive use of donated models.  Check with your region or division.

Q.  Might it be appropriate to donate real estate to NMRA when I pass away?
A.  In general, NMRA is prepared to receive cash, cash equivalents, or marketable securities.  Acceptance of other types of contributions must be approved the by the NMRA Board of Directors.  Similarly, acceptance of contributions with restrictions beyond those described above must be approved by the Board. 

Q.  Is the NMRA a 501(c)(3) organization?
A.  Yes. A word of explanation may be appropriate here.  The U. S. Internal Revenue Service recognizes twenty seven different types of tax exempt organizations (frequently called nonprofit organizations).  The “gold standard” is the 501(c)(3) organization – typically an arts, social service, environmental or educational organization.  Such organizations have privileges that other tax exempt organizations may not have.  For example, if a donor in the United States itemizes his income tax deductions, contributions to 501(c)(3) organizations can normally be included.   

Q.  If I have questions about this program, who should I contact?        
A.  I’m always happy to hear from anyone.  But, to be realistic, your best source of information on this matter will be Roger L. Cason, the NMRA Fund Raising Manager (1125 Grinnell Road, Wilmington, DE  19803-5125, rogercason@juno.com).

Best regards,

Mike Brestel
President