Every nonprofit organization benefits from endowments. They can provide financial stability and serve as a nest egg of capital to generate income. It’s important to remember that not all endowments are built the same. Managing and spending these funds needs a responsible and strategic approach. A well-defined endowment spending policy dictates how the funds are utilized and should align with the organization’s Read More
Endowments Aren’t Just For The Big Organizations
Nonprofits have the power to do amazing things for the communities they serve, but like all endeavors, they require funding. Traditional fundraising is a necessary part of continuing day-to-day functions, but you’ve likely already experienced the challenges of maintaining a steady stream of donations. Endowments are not only critically important for the sustainability and growth of nonprofit organizations, but they Read More
Endowment Management: Financial Roles on a Nonprofit Board
As a volunteer fundraiser and nonprofit board director, I have seen first-hand how the lack of understanding or definition of board members roles, specifically Finance Chair or Board Treasurer, can impact endowment management. Part of the challenge comes from lack of role clarity for board members. I recall how I was recruited to a nonprofit board many years ago and was very excited to get started since I was so Read More
Endowments and UPMIFA: Why It Matters
A nonprofit with a few years under its belt will eventually ask itself, "Should we have an endowment?” And while this is not a straightforward decision, on balance, the answer is yes. From a fundraising perspective, a nonprofit endowment demonstrates to prospective donors that this is an organization that has meaningful financial support to fulfill its philanthropic mission. However, managing an endowment requires Read More
Endowment Advisor Search? Prepare With Three Actions
Is your nonprofit getting ready to do an endowment advisor search? Here are three actions your nonprofits should take before you speak to an external advisor. Is your nonprofit getting ready to do an endowment advisor search? Here are three actions your nonprofit should take before you speak to an external endowment investment advisor. Before we discuss preparation, I have a question. Have you ever been in a Read More
Three Things to Know NOW to Launch Your Nonprofit Endowment
A nonprofit with a few years under its belt will eventually ask itself, "Should we have an endowment?” And while this is not a straightforward decision, on balance, the answer is yes. From a fundraising perspective, a nonprofit endowment demonstrates to prospective donors that this is an organization that has meaningful financial support to fulfill its philanthropic mission. But also recognize that managing an Read More
Are You Ready for Your Nonprofit Endowment?
We’ve heard lately from several small nonprofits asking whether they’re too small to start an endowment. The quick answer is, no! The choice to start an endowment is not based on size but more on purpose. An endowment is a pool of funds set aside for a medium or long-term spending need, regardless of size or mission. When a nonprofit maintains an endowment, it indicates that it is committed to uninterrupted community Read More
What Your Nonprofit Endowment Needs and Why
“We don’t need any policies.” That was an actual quote from a nonprofit board member in response to whether the organization should establish an Investment Policy Statement to govern the organization’s endowment. A policy and procedure nerd like me was horrified at the lax approach to nonprofit governance. Policies can be interpreted as unnecessary, bureaucratic rules that limit flexibility, yet a clear and concise Read More
What Is An Endowment and Tips Your Nonprofit Needs to Know
What is an endowment and should we have one? Nonprofit leaders frequently ask us these questions so we break down the details here. An endowment is the most recognized strategy an organization uses to invest a large donation typically restricted by a donor to support a specific program either over a set time frame or indefinitely. For example, a wealthy philanthropist could donate multi-year funds to their favorite Read More
Choosing Nonprofit Endowment Advisors in Six Steps
Simplifying Advisor Selection Process for Your Endowment When I first started doing nonprofit board work several years ago, I remember receiving advice along the lines of “Remember, your job as a Nonprofit Board Director is to advise. Knowing your boundaries is important for the success of the leadership team and the organization.” The challenge for many nonprofit board members, however, is knowing where those Read More
