Empower ministry for generations to come by creating a self-sustaining source of annual income that can last forever.
If your organization is planning for the future, “Yes!” An endowment enables your organization to thrive in ministry for years to come by signaling to your donors and friends that you are responsibly planning for a visionary future and you will be thoughtful with their legacy gift. Donors are given the peace of mind that your organization will be a wise steward of something they may have worked a lifetime to build.
Video: Endowments Overview
The endowment becomes a lasting source of annual income. As the endowment grows over time, the income available for ministry grows.
*The Foundation’s Recommended Spending Policy is 4% of the average of the previous three years, year-end, fair market value in order to sustain the long-term growth of the fund. Clients are free to utilize a spending policy that best fulfills their funding goals.
What kind of endowment should we establish?
If you are just getting started with endowments, you may find that a General Endowment Fund best serves your needs. The annual distributions from a General Endowment Fund can be directed each year by your leadership to meet the greatest ministry need at the time or any combination of needs in any given year. A General Endowment Fund provides the flexibility to meet changing ministry needs such as:
· Capital Needs
· Missions and Outreach
· Student Scholarships
· Other Ministries
What is the first step in establishing a General Endowment Fund?
Contact us, and we will guide you through the process. We have a sample endowment document ready to share with you, and it is our pleasure to assist you with the full endowment development.
Will funding the endowment negatively impact our annual giving?
Most donors actually have two pockets – their income pocket, and their asset pocket. Endowments are generally funded through Planned Gifts, which people make from their assets, while they generally make gifts to your operating budget from their income. Emphasizing an endowment demonstrates the organization’s commitment to use legacy gifts wisely, and thereby encourages people to make gifts that will outlive themselves.
How much money do we need to begin a General Endowment Fund?
You can begin an endowment with zero dollars. We assist many organizations in establishing endowments before the first dollar is ever received. Once created, we are also happy to assist you with developing a plan to grow the fund.
How much annual income will an endowment produce?
Following the Foundation’s Recommended Spending Policy of 4%, every $100,000 in the endowment (3-year, year-end average) will produce $4,000 annually as a distribution.