Terms of Endowment

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Terms of Endowment
Be More Secure

• Beverley McLain, MBA
• Vice President of MarketingCommunity Foundation
  of Tampa Bay
• www.cftampabay.org

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Endowment OverviewChallengesSetting Goals
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Overview
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• Why so much talk about endowments?
• Donations are down
• Government grants are shrinking
• Some private and public foundations are cutting
  grants

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Overview

• The shift in perception about endowments.
• THEN an embarrassment of riches no need to
  raise other money
• NOW fiscal responsibility

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Overview

• Defining endowment
• True endowment
• Quasi-endowment

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Challenges

• Internal Development Culture
• Seasoned fundraising first
• Contact management software
• Donor relationship building experience

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Challenges

• Myths about endowments
• We will appear too well-off.
• Position yourself as a resource for the future
  and a reflection of fiscal responsibility of your
  board.

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Challenges

• Myths about endowments
• Restricted gifts are too difficult to manage.
• Work with your donors to make gifts as flexible
  as possible.

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Challenges

• Myths about endowments
• Annual gifts will drop.
• Annual giving and endowment building must be
  positioned as two distinct opportunities.

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Challenges

• Time
• Senior staff and board must make this commitment
  so that endowment building has its place as one
  of your priorities.
• Time for relationship building.
• Donors
• Professional advisors

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Challenges

• Money
• Resources for staff, marketing materials,
  training
• Endowment ? operating reserves

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Challenges

• Income stream
• 100,000 at 5 5,000 per year
• 1,000,000 at 5 50,000 per year

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Goals

• How do we get there from here?

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Short-Term Goals

• Develop a donor prospecting process.
• Write a compelling case statement giving your
  rationale.
• Make it donor centered whats in it for them?

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Short-Term Goals

• Set dollar goals for the near-term.
• Seek out matching and challenge grants.
• Develop your communications materials.
• Involve your board via time and/or financial
  commitments.
• Provide staff training on planned giving.

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Short-Term Goals

• Have various policies in place.
• Gift acceptance
• Investment
• Donor recognition

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Long-Term Goals

• Set dollar goals for both current and deferred
  gifts.
• Develop donor relationships through X number of
  calls.
• Establish a professional advisory council.
• Sponsor educational events for professional
  advisors.

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Be More Secure
Final Thoughts

• Will endowments started now help now? Probably
  only a few will benefit, but we are building for
  the future, and there is no time like now.
• David J. Fischer, President and CEO
• Community Foundation of Tampa Bay
• www.cftampabay.org