Creating an Endowment

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Creating an endowment seems simple, right? Just ask committed major donors for very large gifts and invest those dollars so spin off sustainable annual funding for your operations. Plus, there are no construction schedules to coordinate or building groundbreaking deadlines to meet. 

While building an endowment has some wonderful points of simplicity, the process also has its own specific complexity, the details of which should not be ignored. Fundraising for an endowment requires the attention and care that any major gift fundraising endeavor requires. 

If your organization is considering building an endowment, here is a simple checklist for both the preparation and the fundraising stages for any endowment fundraising effort or campaign. 

Phase 1: Endowment Setup and Pre-Fundraising Planning

• Write a compelling, urgent, thoughtful, and clear Case for Endowment/Endowed Fund Support.
• Develop a Gift Agreement to document the intentions and specific expectations of the lead donor(s).
• Internally distinguish your Reserves from your Endowed Assets.
• Develop and approve an Endowment Investment Policy, including a spending policy and use restrictions.
• Develop and approve a Gift Acceptance Policy for endowment gifts.
• Establish an Investment Committee.
• Acquire an investment firm to invest the endowment/endowed funds per the organization’s investment policy.
• Recruit endowment fundraising “campaign” chairs and committee.
• Conduct a Feasibility and Planning Study for campaigns/fundraising efforts when the amount to be raised and the capacity need to be assessed and established.
• Conduct wealth screening on database.
• Build prospect list of major gift donors ($25K+).
• Develop a Fundraising Plan (Timeline, Phases, Budget, Responsibilities, Table of Gifts, How to navigate around annual fundraising events and activities, Etc.).
• Create a recognition plan for endowed donors (Permanently named endowed fund levels, etc.).
• Determine staffing needs and hire support as needed.

Phase 2: Endowment Fundraising

• Activate (train and support) endowment fundraising “campaign” chairs and committee.
• Create endowment fundraising materials (Brochures, PowerPoints, Proposals, Etc.).
• Create an FAQ.
• Maintain prospect tracker with updates on all “moves”.
• Develop plans for events to educate and inspire prospective donors (Salons, Tours, One on One Meetings, Etc.).
• Coordinate fundraising around prospective major gift leads.
• Implement Fundraising Plan.
• Determine public announcement and plans for public fundraising (Current and Alumni Families, Etc.).
• Implement public fundraising plan.
• Develop plan for Legacy Society and ongoing planned gift/estate giving (Marketing Plan, Committee of experts, Etc.).
• Create Legacy Society (Description, Benefits, Calendar).
• Advertise and encourage joining the Legacy Society.
• Ensure all donor acknowledgements and process to thank donors is activated.
• Develop stewardship plan for endowment donors during timeline of pledge payment period and beyond.
• Celebrate campaign success.

If you’ve found something within this white paper that you would like to explore further with our team, or if you’d like to start building an endowment and think we might be able to help further, please contact us.

Claudia A. Looney, FAHP, CFRE

Principal and Managing Partner

claudia@covenantfirm.com

Kyle Houlton, CFRE

President and CEO

kyle@covenantfirm.com

www.covenantfirm.com