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Establish an Endowment, Create a Legacy

Why establishing an endowment fund is beneficial to your organization’s future

Does your nonprofit have what it financially needs to last?

To ensure your organization has a lasting legacy, it's important to invest in its longevity. Establishing a nonprofit endowment fund allows you to do just that.

We launched a free, online endowment toolkit to introduce you to the importance of a nonprofit endowment fund. Our first module walks you through what an endowment is, how your organization can benefit from this type of fund and how to prepare your organization to start an endowment fund.

What is an endowment?

Nonprofit endowments can allow your organization to establish a stable stream of income, building annual revenue and alleviating the pressures of inconsistent annual funding. They also are a great way for donors to contribute to the health and vitality of your organization.

With a nonprofit endowment, your organization can channel gifts into a fund to build over time. Endowments are designed so that the initial investment made by your organization fuels annual disbursements. Over time, as you grow your endowment, the annual revenue can grow as well.

“For example, if you start with a fund with $100,000, that fund, over 50 years, can grow to over $260,000*, and distribute over $420,000 back to your organization,” said gift planner Elizabeth McCray.

Get expert advice on how to start an endowment

When choosing your endowment partner, it’s important to know that they have your best interests in mind. When you work with a community foundation, like the Saint Paul & Minnesota Foundation, you are partnering with an organization that is not only invested in you, but in your community and its growth.

Our expert staff works with more than 200 organizations, managing nearly 400 different endowment funds. In addition to endowment fund support, our staff works with nonprofit fundholders to design services that are specifically tailored for their nonprofit’s unique needs and goals.

Our expert staff are always happy to have conversations about endowments. To learn more about starting a nonprofit endowment fund, contact gift planners Mariah Brook (651.325.4269) or Elizabeth McCray (651.325.4297).

To learn more about the digital endowment toolkit or how you can achieve stability and longevity through an endowment, check out our nonprofit endowment resources, and be on the lookout for additional toolkit modules. Each one will provide tips on topics like ways to grow your endowment and how to get the most out of planned giving.

*Disclosure: Numbers are for illustrative purposes only. Past performance is no guarantee of future results.

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