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Ten Ways to Enhance Endowment at Your Institution
Kathy Watson and Patricia Voigt, Senior Consultants

October 2007

The following is from a presentation S&W Senior Consultants Kathy Watson and Pat Voigt gave to the Boards of trustees of Chestnut Hill College, Morris Arboretum, and Woodmere Art Museum at a function sponsored by Haverford Trust.

Link Endowment to Institutional Excellence

Create a solid vision backed by a plan that can be clearly explained. Consider stronger staff, more impact, and adventuresome programs. Benchmark!

Make the Financial Case for Endowment

Articulate what is needed in the context of overall institutional health. Emphasize fiscal stability; a healthy endowment will ride out volatile markets. Link endowment to your strategic plan. Create a stable platform for growth. Add endowment when building new facilities.

Market Your Endowments

Balance your current needs/facilities with long-term endowment goals. Focus development staff and CEO time on endowment. Every campaign should have endowment component.

Integrate Planned Giving into Your Solicitations

Encourage blended gifts, for example, a major gift to establish a fund, annual gifts to activate the fund, a planned gift to complete the endowment. Create opportunities for smaller funds to grow with the endowment.

Role of the Board

Board members are ambassadors and represent the organization to the broader community; it is essential you understand the needs of your institution. The Board has a distinctive role in fund-raising. Understand the philanthropic role of the board: highest priority, 100% participation. Use your contacts for your organization. Board giving sets the pace for others. Consider a Board matching or challenge grant to spur giving

Focus on Building Long-Term Relationships with Prospects

Endowment gifts link the values of the donor to the values of your organization. Seek to continue connections with former board members, staff and faculty. Routine letters and reports offer the opportunity for another gift.

Forge Strong Partnerships between Finance and Development

Each party must understand the obligations that come with stewarding gifts. Today there is a new emphasis on transparency and accountability. Your ability to market strong and consistent returns over time inspires confidence. Ensure that your internal systems support your reports.

Focus on Stewardship

Always focus on the impact of a donor’s gift, report back frequently, be “donor centered.” Link donors to their recipients—scholarship students, curators, program staff. Be clear with donors about use of their gift, the growth of funds, your management philosophy.

Accountability

Be clear about minimum gifts required to establish endowed funds to avoid frustration on both sides . A minimum gift can be $10,000 or $100,000—whatever will have a true impact on your organization. Review fundraising strategies with your CFO and ensure that management and stewardship are accurate and deliverable. Work out details of gifts with admin/faculty/curators for terms of endowment funds. Articulate your investment strategies.

Create Special Endowment Funds That Will Underwrite Specific Programs and Projects

Have meaningful naming opportunities to link donors to your institution. Build funds with families over time; continue a legacy of giving. Make endowment central to the life of the institution and communicate that to your donors via mail, website, and email messages.

Schultz & Williams is a national consulting firm based in Philadelphia; providing management, fundraising and marketing consulting for nonprofit organizations, along with full-service direct marketing, database and creative/production services.