Q&As

Endowments can serve numerous purposes. Here are some ways your organization might benefit from an endowment.

• Financial stability. A healthy endowment mitigates insecurity and eases financial pressures.
• Regular income. Through smart investing an endowment provides reliable revenue for programs or overhead. 
•  Emergency funds. An endowment serves as a safeguard against major disasters. However, it should not be considered as a tool to counterbalance bad financial management.
• Future opportunities. An endowment — within the framework of spending policies — provides funding for new ventures or sudden opportunities.
• Generational equity. An endowment allows an organization to meet the needs of future generations.
• Donor opportunities. An endowment allows major donors to have a lasting impact.
• Confidence builders. Funders are attracted to successful endeavors. A strong endowment builds donor confidence.