Cultivating and Soliciting Endowment Gifts
The strategies for cultivating and soliciting endowment gifts are similar to those used for major and capital gifts, but the building of a successful endowment program necessitates being mindful about what is special about endowment fundraising.
In his book Building Your Endowment, published by the Indiana University Center on Philanthropy, Edward C. Schumacher lists eight items that must be kept in mind about endowment fundraising.
They are:
- The total dollar amount raised will consist of a few large gifts rather than many small gifts. For the interest from an endowment fund to make a financial impact, there must be a significant amount of money in the endowment fund.
- Negotiating an endowment gift will take longer than any other kind of fundraising. The time spent with prospective donors will be longer and more demanding.
- Endowment donors are sophisticated about ways of giving. Most endowment donors already have been approached by their church, their college or their hospital.
- Solicitations will require more personal contact than is required during other types of fundraising. Endowment fundraising cannot be done entirely by phone or mail.
- Prospects will ask tough questions. They will request a wide range of financial and money-management information.
- Prospects will want proof that endowments are a good investment. They will think like investors.
- Prospects will want proof that their endowment gift will make a difference. It is vital for the organization to have a clear view of the impact of the endowment.
- Prospects will want to know the entire endowment plan. Endowment donors think big and ask tough questions.
Courtesy of The Nonprofit Times.
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