How do you build an endowment fund
that will support your organization now and into the future?
First of all, what is an endowment?
A financial endowment is a transfer of money or property donated
to an institution, with the stipulation that it be invested, and
the principal remain intact. This allows for the donation to have
a much greater impact over a long period of time than if it were
spent all at once. The process is also known as "planned giving."
Let's take an introductory look at some of the reasons people
will put you into their planned giving instruments.
- "We are lifetime members of your organization." People
who have an already existing relationship with you are more
likely to make legacy gifts to your organization.
- "We have been giving to you for a number of years" so
a bequest makes sense. When you scan your database, don't look
for the "high level" givers but rather the most consistent and
routine givers.
- "We don't want the kids to be fighting over the money." They
would rather give to a charity that they know than have their
children squabble over the money.
- "It is the good and right thing to do, so we just
did it." People like to give because it feels good
and it makes an impact in the community.
- "I have been a volunteer with this organization and
I know the money will be used well." Look toward
your volunteers and other key stakeholders first because they
know you and know how the money is used.
- "I want to memorialize my name and become immortal." Some
people will look at your organization as a way to carry on their
name and family legacy, so give them the opportunity to have
their name and values live on in the future.
- "We have more value dead than alive." They
can make a really big donation after they pass away than they
can at the present time.
- "We have made enough money for our kids and family and
we want to leave the rest to charity." Many families have made
all the money they need to live and are looking for opportunities
to give it away.
- "The organization is making a real difference in the
community and I want to reward them for their accomplishments."
- "The charity helped my mother when she was alive so
I want to help them when I die."
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