Racial, Ethnic, Tribal Philanthropy: Endowment Creation
When and how does a racial, ethnic or tribal fund build its endowment?Endowment funds are designated as a permanent account. With investment and some ongoing fundraising, the amount of money in the endowment compounds over time. The principal stays put, while the interest is used to support programs and grantmaking. Racial, ethnic and tribal fund and foundation endowments range from $25,000 to $75,000 in start-up or emerging organizations. In more established funds and foundations, endowments can reach $500,000, $1 million or even more.
Materials
- The Case for Building an Endowment
Considerations for beginning to build an endowment, the impetus for the endowment and the strategy for building. - Leadership
The leadership must be fully engaged when pursuing this long-range fundraising effort. A new look at board involvement may be necessary - Capacity
Keep in mind resources including people, systems and money when planning for building your endowment. - Policies
There are several policy changes that need to be in place for endowment building. - Plan
Elements to consider as part of your planning and strategy.
Links
- A Primer for Endowment Grantmakers
A primer for endowment grantmakers to assist amd enhance the work of nonprofits by the Ford Foundation (2001). - Providing for the Long Term: Supporting Endowments and Investable Assets
In this GrantCraft guide grant makers discuss the opportunities and pitfalls of supporting endowments and alternatives to endowments.
