Nonprofit Resources
3 Reasons to Establish an Endowment Fund for Your NPO
February 10, 20221. An endowment fund appeals to donors. Most donors prefer to give to a fund that is guarded and invested separately from the organization’s other assets. They also view donating to an endowment fund as an investment in the future. They want to be part of something that is not only sustainable for their own lifetime, but also a legacy that will endure into the future.
2. An endowment fund provides durability. An endowment fund can provide your organization with a perpetual stream of support that’s protected and grows over time. It can provide general operating support, stability during cyclical income variances, and income for areas of high importance to the organization.
3. An endowment fund helps your organization plan for the long run. An endowment allows you to invest in the work of your organization for future generations. Regardless of leadership changes, an endowment offers a long-term strategy that supports your mission. That’s because it’s designed to provide a consistent source of revenue that builds capacity and sustainability. Nonprofit organizations that establish an endowment fund are those who want to see their work endure.
Contact our office to learn more about setting up an endowment fund for your organization. And be sure to participate in our 2022 Endowment Challenge.