Endowment Management Services
Create Financial Stability for Your Nonprofit
To provide your nonprofit organization with a stable income stream for generations to come, consider establishing an endowment fund as part of your long-term success for the future. Endowments are a great option to increase the stability of your organization, channeling charitable gifts into a single investment fund that builds over time.
Grow Your Capacity Through Endowments
Creating a fund with the Saint Paul & Minnesota Foundation can provide your organization with a stable income stream for years to come. Carefully managed by our expert endowment management team, your funds can grow over time, providing stability for generations.*
How an Endowment Can Grow
*This example demonstrates the impact of an endowment over time. Annual investment results vary over time. Please contact our Philanthropic Services team for more information.
Year 1
- Balance:
- $100k
- Distribution:
- $5k
- Cumulative:
- $5k
Year 10
- Balance:
- $126k
- Distribution:
- $6k
- Cumulative:
- $50k
Year 25
- Balance:
- $197k
- Distribution:
- $10k
- Cumulative:
- $172k
Year 50
- Balance:
- $413k
- Distribution:
- $20k
- Cumulative:
- $543k
Endowment Spending Policy Summary
The Saint Paul & Minnesota Foundation has adopted a long-term investment strategy and a method for distribution from permanent endowment funds, known as our spending policy. The spending policy defines our procedure for calculating the amount to be distributed each year for endowed funds.
“ Instead of putting such a large gift to use in one year, our board of directors wanted to see those dollars work forever, so they opened an endowment called the Forever Fund.”
—Erin Shay, United Way of Northeastern Minnesota Executive Director
Is an Endowment Right for Your Organization?
Before starting an endowment, it’s helpful to have some best practices in place. Here are a few questions to ask yourself about your organization that will help you determine your endowment readiness.
- Has your organization been operating for more than 10 years?
- Does your organization have a stable annual fund program with donors who have been annually contributing for 10 or more years?
- Does your pool of prospects have a diverse age range and are your oldest prospects retired or approaching retirement?
- Have you been notified of at least one planned gift to your organization within the past five years?
- Does your organization have a dedicated staff position that can schedule and follow up with planned gift prospects and donors?
Learn more about starting an endowment in our endowment toolkit.
Donors Can Support Your Endowment in Many Ways
Invest in a charitable gift annuity
We will work with your organization to ensure that in return for each gift, donors receive a guaranteed, fixed income for life at a rate that is higher than that of a savings account or certificate of deposit.
Create a charitable remainder trust
A charitable remainder trust allows donors to make a charitable gift, receive income throughout their lifetime and possibly benefit from tax deduction or reduction of capital gains tax. They can also choose a second person (e.g., spouse, partner, friend) to receive lifetime income, before the remaining funds support their favorite nonprofits.
Establish a designated fund
Designated funds provide long-term support so that your organization receives continued and reliable funding. Designated funds ensure that each gift has maximum impact.
Make a planned gift through their will
Donors can easily make a gift through their will. This kind of gift “costs” them nothing during their lifetimes, but has the potential to impact the community forever.
Start the Conversation
Ready to explore endowments further? We can guide you through the process. Contact Director of Gift Planning Mariah Brook or Nonprofit Strategies Manager Elizabeth McCray.
