Creating an endowment may be an important strategy to set aside funds for the future, and can be a hallmark of financial sustainability. However, creating an endowment is not the right approach for every nonprofit, so it is important to understand what the advantages may be, and also what the administrative and fiduciary requirements are in order to properly maintain an endowment over time.

To start, what exactly are “endowments?” Endowments may generally be described as assets (usually cash accounts that are invested in equities, bonds, or other investment vehicles) set aside so that the original assets (known as the “corpus”) grow over time as a result of income earned from interest on the underlying invested funds. The corpus may also be added to over time. Endowments are commonly used by large institutions, such as universities and hospitals, but they may also play a role in any charitable nonprofit’s financial management and/or revenue strategy.

At CEND, we understand that developing an endowment plan is only the beginning of the challenge. Success depends on executing the plan, monitoring progress and the situation carefully, and making the right adjustments to maintain momentum and keep the campaign on course. We also understand the importance of executing the campaign in a manner that does not jeopardize, undermine, or disrupt ongoing annual fundraising programs.

We see ourselves as your partner on the campaign team, advising on strategy for the overall campaign as well as strategies for individual prospects. We believe that every decision made along the campaign route impacts the outcome, and we strive to use the experience we have gained over the years to ensure that those decisions have a positive impact on your campaign’s success. We strive to be proactive and help guide you through the campaign, rather than being a “Monday morning quarterback” who critiques you after decisions have been made.

We understand that no two organizations, no matter how similar, are exactly alike. There are unique strengths, challenges, and histories that all influence the campaign. We believe that our job, as consultants, is to develop and execute a strategy that takes all of these factors into account to capitalize on the strengths and mitigate the challenges.

We believe that success is defined by what happens at an institution after the campaign is over: fundraising programs are stronger, annual fundraising has reached a higher level, staff is better trained, and, most importantly, the leadership understands that fundraising is an ongoing investment. In our role as consultants, we are looking at life beyond the campaign as well.