Permanent Endowment Program Research Project Illustration

Illustrated below is a cash flow summary of a Permanent Endowment Program that was initially funded by a donor with a one-time gift of $11.6 million.   The Permanent Endowment Program process allocates the $11.6 million gift to create $58,000,000 of mortality gain perpetually multiplying, inter-generational endowment funding for the selected 501 (c) 3 non-profit organization that supports value systems that are important to the donor, to the donor’s family, and to society.  “Benefactor-Insureds” are individuals in whom the non-profit organization has an insurable interest.  $1 million mortality gain contracts are underwritten on these individuals’ lives.

As deaths occur the proceeds are allocated as follows: 65% to the 501 © 3 non-profit organization as undesignated, spendable endowment funds, 20% to acquire twice as many mortality-gain contracts on the next generation of Benefactor-Insureds, and 15% to the Permanent Endowment Foundation, the third-party administrator of the Permanent Endowment Program.  The Permanent Endowment Foundation manages the collection and allocation of mortality gain funds and the intergenerational process of identifying Benefactor-Insureds and monetizing their un-used human economic value through the purchase of additional mortality gain contracts.

The participating 501 (c) 3 non-profit organization receives spendable funds of $3,424,000,000 over five generations.  The Permanent Endowment Program continues to generate perpetually multiplying funding, in perpetuity, as long as Benefactor-Insureds of participating 501 (c) 3 non-profit organizations’ can be identified and insured.


Allocations of Mortality Gain Generated By Pep Benefactors/Insureds


1. 2. 3. 4.


Mortality Gain Funding (000’s)


$85K $125K $183K $268K

Number of Benefactor Insured’s


125 183 268


Mortality Gain (000’s)


$625K $915K $1,340,000


Next Generation Mortality Gain Multiplication

Funding (000’s)


$125K $183K $268K


Spendable Cash to 501 (c) 3 Organizations (000’s) $277K $407K $595K $871K