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Endowment Definitions to Keep in Mind

Several words and concepts need to be understood before delving more deeply into building endowments. Benefactor Group has been working in philanthropy and fundraising for over 20 years and has helped many individuals and organizations establish endowment funds.

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Kinds of charitable gifts available to donors

Charitable gifts can be divided into three categories: (1) immediate or outright gifts, (2) deferred gifts, and (3) deferred gifts with income benefits. Although it is beyond the scope of this article to detail the technicalities and details of various kinds of gift options, it is important that fundraisers understand the basic concepts and benefits behind gift options.

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Understanding Endowment

Endowments are hot topics these days. In nearly every issue, The Chronicle of Philanthropy describes multimillion-dollar gifts to the endowments of some of the largest and most powerful charitable organizations, especially universities and hospital systems. But many organizations are not included in this outpouring of largess. And often the executive directors and board members of nonprofit organizations are confused about the hoopla about endowments. Unfortunately, these leaders do not perceive that endowment building is possible—or even desirable—for their organizations.

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Building Creative Capital

cap•i•tal (n): a measure of the assets available to build a business. In general, companies with access to working capital will be more successful since they can expand and improve their operations.

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Featured: Giving USA 
2021 Infographic
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