Sometime during the life of a nonprofit organization, a board member, donor, or executive director will want to discuss the possibility of establishing an endowment.  This important step for an organization may not only bring in additional dollars, but also demonstrates a long-term commitment to the community and the foresight to stabilize the organization’s funding base.  However, your board and staff must carefully assess its readiness to take such a step, your capacity to maintain the long-term effort required, and the legal requirements involved.

The process of building endowment requires commitment, over many years, from the entire organization.  The temptation to spend all contributions for current operations is strong.  Successful endowment-building requires steadfast dedication to the principle of investing for the future.  When an organization’s endowment fund is established and growing, the benefits of this commitment will be apparent.  Income earned from the endowment can be reinvested for compound growth or can provide a predictable income stream.  Endowment income lessens the pressure to raise current operating dollars and helps to smooth the ups and downs of economic business cycles.  Additionally, endowment sends a positive message to donors:  the organization has achieved a key measure of financial stability and intends to carry out its mission for generations to come.

Our Foundation achieves its mission by helping nonprofit organizations build permanent endowment funds that support their charitable work in perpetuity.