Endowment Creation 101 Step 2-Endow your Annual Fund Gift

Chauncey Loomis was not only a noted scholar, author, and fisherman-he was a very sophisticated philanthropist. This linked article details Chauncey's $2.0 million gift to Berkshire Taconic Community Foundation and the 20+ organizations that will benefit in perpetuity-in effect his annual support will continue uninterrupted.

I have to assume that all non-profits interested in long term survival have taken

step 1-establishing a 'Legacy Circle' to recognize those who have already or who have the intention to make provision for the non-profit in their estate. [I recollect that some 85%+ of all legacies to NPO's come in the form of outright bequests.]

step 2-Identify your top X [5, 15, 50?] annual fund donors and determine if, how, when they might be asked to 'endow' their annual fund fund gift.

Some organizations rely on annual infusions from 1-5 annual fund gifts to make their operating budget for the year. It is a key board responsibility to help stabilize the funding stream and insuring that some % of key annual support is insured should be a top priority. For some donors an initial commitment to insure one's annual gift [say $25,000 to produce $1000] may serve as a 'starter gift'-for others this commitment would represent a major stretch. For higher risk organizations [arts people please take note!] it may be very important to partner with a community foundation or other 3rd party fiduciary [bank trust department] to reassure the quizzical donor that his/her money won't be inhaled by the operating budget!