If you love the nonprofit you serve and are able to give a cornerstone gift of $250,000-500,000, or if you receive an unexpected gift in that range, it may be time to establish an endowment.
An endowment can help your charitable organization serve future generations with strength.
A financial planner told me that a $2,000,000 endowment could supply enough interest income to help support a small nonprofit. Ask the best financial person you know to make a real-time projection for your organization and set your first goal accordingly.
People want to feel that the organization they support with a major gift will be around long after they are gone.
So, before your organization is 7 – 10 years old use the following “soft asks”:
a note at the end of your newsletter
a line item on your pledge form
a box to check on your website
are appropriate ways of inviting donors to ask you for information on legacy gifts.
Then, after year 10, launch an endowment campaign. Offer campaign-style personal appointments with faithful donors to discuss legacy gifts.
Host a class led by an attorney and or financial planner on “how-to-make-major-gifts”. Invite other nonprofits to attend with their donors to make this event a fundraiser in itself.
Encourage your donors to talk over any major gifts with their personal financial advisors before finalizing any plans with your nonprofit. You build donor confidence when you encourage folks to be careful.
As always, I am hoping for your every success!
