In this episode of "All About Capital Campaigns," Amy Eisenstein and Andrea Kihlstedt delve deep into the world of nonprofit endowment campaigns. We'll explore when and how to raise money for endowments, as well as the critical considerations involved. Join us as we navigate the complexities of endowment campaigns to help you make informed decisions for your organization's financial future.
In today's discussion, we address the common scenario of organizations reaching milestone anniversaries and wanting to celebrate with a massive endowment campaign, such as raising $25 million for their 25th birthday. While this may seem like a great idea from a PR perspective, it raises more questions than answers.
We explore essential questions your board should ask before diving into an endowment campaign, starting with understanding the various types of endowments and their implications. What kind of endowment fund do you want, and do you already have one? What policies will govern your endowment, especially regarding investment decisions and spending restrictions?
The conversation delves into the ethical considerations of sitting on a large endowment while immediate needs persist. Is it appropriate for your organization's culture and context? What's the role of the endowment within your organization, and how big should it be?
Amy and Andrea also discuss the relationship between endowment and capital campaigns. While most capital campaigns include endowment components, they emphasize the importance of a well-rounded campaign that addresses various priorities, such as buildings, programs, services, and technology.
Discover why donors might hesitate to give outright to endowment funds and how planned giving can be a strategic approach to growing your endowment over time. Understand the challenges of convincing investors to divest from their own successful portfolios into an endowment.
Amy and Andrea share insights into why organizations should not rely on endowments to eliminate the need for fundraising. They highlight how fundraising can keep your organization engaged with donors, even when you have a substantial endowment.
Don't miss this enlightening discussion on the complexities of endowment campaigns. Whether you're considering launching one or are already deep into the planning, this episode provides valuable insights to help you make informed decisions about your nonprofit's financial future.
So, tune in, share this podcast with your board members, and start the crucial conversation about endowment campaigns. It's time to think strategically and ensure the long-term sustainability of your nonprofit organization. Thank you for joining us on "All About Capital Campaigns," and we'll catch you next time.