A smart way forward for local charities
20 May 2019
Many of us know the uncertainty that goes with the ‘scattergun’ approach to fundraising – grant applications out, donor campaigns trialed, ongoing stewardship of bequest prospects and a wide exploration of corporate opportunities and fundraising events. In the world of charity fundraising it sure can be hard to keep your head above water.
What if there was another way? One that will a) attract a more strategic type of donor and larger, more major gifts and b) ensure long term income streams for your charity?
Across New Zealand we work with many local charities who are keen to learn more about creating a sustainable income stream, one which keeps on giving so that the charity can get on with their important mission, their raison d’être, their reason for existing.
What is an endowment fund?
An endowment fund is a major gift or bequest which is invested and grown, with the income flowing back to the charity, in perpetuity (forever).
Ultimately the gift invested in perpetuity will return far more to your charity over time than the original gift would, and it can create a significant and sustainable income stream.
Further, endowment funds appeal to a smart new wave of major donors/bequest prospects and philanthropists, many of whom are increasingly feeling burnout from traditional forms of fundraising and multiple requests for donations.
Global research tells us that major donors are changing their habits and want to become more strategic and more involved in where their charity dollar goes. Our experience across New Zealand backs this up; Kiwis want to effect real change for the long term. They want to feel that philanthropic solutions are within their sphere of influence.
Check out some of the charity endowment funds and the top reasons for establishing them at the link and have a chat with your local Community Foundation today about the possibilities.
In today’s fundraising environment offering more strategic giving options like a professionally managed endowment fund is definitely a smart way forward for any charity.
Eleanor Cater is speaking at the FINZ Conference in June, alongside Acorn Foundation, about endowment funds and creating a sustainable income stream for your charity.