Forever Funding as a New Year’s Resolution

The new year often gives people the feeling of a fresh start and a renewed sense of hope and the opportunity to make positive changes in their lives and the world around them, creating resolutions or goals for the year.  Many non-profit organizations take the opportunity to do the same in planning for the new year by creating strategic goals. One goal or opportunity that non-profits may overlook in their annual planning process is creating or adding to an endowment.

Endowment funds are essential for a variety of reasons. First and foremost, an endowment provides a source of ongoing annual support to address charitable causes.  A well-managed endowment sets a non-profit up for future success by initiating an added component of fiscal responsibility that takes pressure away from an annual fund to allow more independence and freedom. When non-profits set up an endowment, it opens multiple income channels and can help the organization withstand an economic crisis by managing resources well.

The Community Foundation of Lorain County administers over 100 endowment funds for various non-profits serving Lorain County. Our goal is to invest the endowment money provided to us and then distribute a portion of earned income back to them annually. This investment under our oversight helps non-profits have “forever funding” now and into the future.

Supporting endowments is especially attractive to donors interested in creating steadfast resources for non-profits they are passionate about.   A unique feature of an endowed gift is that it will continue to grow and have a lasting impact in our community, serving as a permanent tribute to the donor and extending the donor’s values for future generations. Endowment gifts can sometimes be the donor’s last (and most significant) gift to the non-profits they value most, and donors often receive great satisfaction from making a substantial contribution from assets accumulated over their lifetimes.

As we prepare to hold our Power of Endowment event on January 27th and start to ramp up non-profit participation in Connect to a Cause this September, we encourage non-profits, their board members, and donors to join us to learn more about endowments.  If the non-profit does not have one, should they?  If there is an endowment, what are the non-profit and their board members doing to create growth to the fund and further ensure organizational stability?

Let us know how we can help either by attending Power of Endowment on January 27th or contacting me to discuss your organization’s specific needs.