The VAC Tết Endowment
A permanent fund so that Vietnamese Americans in Memphis can celebrate Tết, year after year, for generations to come.
The terms on this page are tentative.
Target date to establish the fund: Thanksgiving 2026.
Keeping Tết alive for the next generation
One of the VAC's goals is to maintain Vietnamese culture and tradition in Memphis. At the heart of that tradition is Tết, the Lunar New Year.
Celebrating Tết as a community takes money every year. Relying on fresh fundraising each season makes the celebration fragile. We want Tết to be sustainable, especially for the Vietnamese Americans who are born and growing up in this country and may otherwise lose touch with it.
Toward this goal, the VAC has raised funds through the Asian Night Market. The VAC Tết Endowment is how we will turn those funds into lasting support for Tết.
What is an endowment?
An endowment is a fund that is meant to last forever. Instead of spending the money, it is invested. Each year, only a small portion is spent. The rest stays invested so it can keep growing.
If the investments earn more than what is spent, the fund grows over time. A well-managed endowment can support its purpose indefinitely while the original gift stays intact.
That is why endowments are how lasting institutions are built. They let one generation's generosity serve every generation that follows.
How the Tết Endowment works
Annual distribution
At most 5% of the fund each year. That is about $7,500 in the first year.
Restricted use
Distributions can only be used to celebrate Tết.
Gifts go into the fund
The VAC places the initial amount with the Community Foundation of Greater Memphis. Others may add to it later.
The fund is invested
The Community Foundation invests and manages the fund for the long term.
A portion is paid out each year
Up to 5% of the fund's balance is distributed annually. The rest stays invested.
The community celebrates Tết
The money supports a Tết celebration hosted by a representative of the community and approved by the President of the VAC.
Where the fund is held
The endowment is planned as the VAC Tết Endowment Fund of the Community Foundation of Greater Memphis, a Nonprofit Organization Designated Fund. The Community Foundation holds and invests the money, and its income is used for the benefit of the VAC.
The draft agreement is tentative, has not been approved by the VAC board, and has not been signed.
Frequently asked questions
Why an endowment instead of fundraising every year?
Annual fundraising depends on volunteers, timing, and the economy, and a single difficult year could mean no Tết celebration. An endowment provides a steady amount every year, no matter what. Fundraising can still add to the celebration, but the foundation is always there.
Each year, at most 5.5% of the fund is spent: up to 5% for Tết and 0.5% for administration. If the investments earn more than 5.5% a year on average, the fund grows rather than shrinks, and it can last forever (CFGM investment performance).
The goal is lasting support for Tết: keep the fund invested, spend only a small portion each year, and let one generation’s generosity serve generations to come.
What does the Community Foundation (CFGM) do, and what does the VAC do?
The Community Foundation of Greater Memphis (CFGM) holds, manages, and invests the endowment money. Each year, it distributes up to 5% of the fund to the designated organization. The rest stays invested.
The VAC is that designated organization. It receives the annual distribution from CFGM and is responsible for using it only to support the community's Tết celebration. The VAC gives this money to a qualified organizer who meets the host approval and accountability requirements described below. The organizer must provide receipts and return any unused money.
The VAC board appoints up to three of its officers as fund advisors to make recommendations to CFGM about distributions. CFGM manages the endowment itself; the VAC is responsible for how the money it receives is used for Tết.
How should I donate to the endowment?
Once the fund is established, donations to the endowment should go directly to the VAC Tết Endowment Fund through the Community Foundation of Greater Memphis (CFGM), not through the VAC. Ask CFGM to direct your gift to this fund. CFGM accepts gifts from individuals, families, and organizations.
CFGM receives and invests donations to the endowment. The VAC receives the annual distribution to support Tết; it does not collect donations on the endowment's behalf.
How much can be spent each year? Can the whole fund be spent?
At most 5% of the fund's balance each year. With about $150,000, that is up to about $7,500 a year, and the amount grows as the fund grows.
The whole fund can never be spent. The rest stays invested, which protects the fund from being spent down so Tết remains funded for future generations.
What can the money be used for, and who can host Tết?
Only for a Tết celebration that is open to everyone in the Memphis / West Tennessee area.
Each year, the VAC grants the annual distribution (up to 5% of the fund) to a community representative who hosts the celebration. The host can be the President of the VAC, the elected President of the Vietnamese American community, or any other community representative. The VAC President approves the host.
The host must provide receipts and return any unused money. If the President is the host, or is connected to the host, the VAC board must also approve. Money not used for Tết stays in the fund.
How much does it cost to celebrate Tết?
Between $15,000 and $30,000 a year, depending on many factors. As the Vietnamese saying goes, “liệu cơm gắp mắm”: we plan the celebration according to our means.
An endowment of $300,000 to $600,000 would cover Tết completely, since 5% of that is $15,000 to $30,000 a year. Until the fund reaches that size, we will still need to fundraise each year. The initial $150,000 is an important first step. Although the current presidency ends in 2027, the team aims to help future Presidents grow the endowment to a level that can comfortably support the community’s Tết celebration.
What is the VAC's long-term role, and what happens if it no longer exists?
The VAC serves the Vietnamese American community in Memphis and West Tennessee. Its current President, Nhuquynh Tran, was elected in 2023 to represent the community for a term ending in 2027. We hope future VAC Presidents will continue to be elected by the community to serve as its representative and President.
Under the proposed endowment structure, the VAC must continue to exist as a qualified 501(c)(3) organization to steward the endowment and receive its distributions. That responsibility continues even if a future VAC President does not represent the community at large.
The VAC will continue to support the community's elected representatives and President. The endowment's purpose is to support the community's Tết celebration, whether it is organized by the VAC President, the elected community President, or another community representative. The host must meet the approval, receipt, and unused-fund requirements described above.
The Community Foundation's agreement allows it to redirect the fund if the VAC stops being a qualified charitable organization or the fund's purpose can no longer be fulfilled. It must first give the VAC at least 30 days' written notice.
Why choose CFGM to hold the endowment?
A community foundation is a public charity that brings together donations from individuals, families, and businesses to support a local area. It manages charitable funds for many different purposes, helping donors support the causes they care about.
CFGM is our region's community foundation. Founded in 1969, it has served Memphis and the Mid-South for more than 50 years. Its published profile for the period through April 2026 reports approximately 1,200 charitable funds and $1.1 billion in charitable assets. In fiscal 2026, CFGM and its donors awarded $147.9 million in grants to 2,012 organizations.
This experience, scale, and local focus make CFGM a good fit for the proposed Tết Endowment. CFGM can hold and invest the fund for the long term, while the VAC focuses on using the annual distribution to support the community's Tết celebration.