Building an Endowment (Part 2)
My last post outlined a basic strategy for building endowments. If you are trying to take the very first step in building an endowment for your cultural heritage institution, developing your “case for giving” should be it. Your “case for giving” is the statement you can take to all your current and potential donors to ask them about their participation in building an endowment. The Association of Fundraising Professionals has an excellent guide to help you develop your case for giving.
It is important to get a handful of big gifts for your endowment before you take your campaign to the outside world. The reason for delaying general promotion of your effort is to give your endowment a chance to be a success. If you already have half of your target goal in your endowment, other donors are going to be much more likely to contribute. It is likely that the first half of your endowment will come from one or two major donors; donors who are already committed to your cause and who also have extensive resources.
The next 25% will probably come from gifts that are still fairly significant in size. The last 25% will consist of small gifts ($500 or less). This is a standard pattern of development for endowments, according to the Association of Fundraising Professionals.
Endowments have an essential place in cultural heritage institutions because they’re among the best vehicles for your donors to leave a legacy. Many major donors are interested in legacy giving. Be sure to give them ample chance to do so with your institution.
