fundraising for endowment
DESCRIPTION
Fundraising for Endowment. Corporation for Public Broadcasting Major Giving Initiative Friday, October 6, 2006 9:15–10:30 AM. Presented by: Janet L. Hedrick, CFRE Bentz Whaley Flessner www.bwf.com [email protected]. Overview of Session. What is endowment? - PowerPoint PPT PresentationTRANSCRIPT
Fundraising for Endowment
Corporation for Public BroadcastingMajor Giving Initiative
Friday, October 6, 20069:15–10:30 AM
Presented by:
Janet L. Hedrick, CFREBentz Whaley [email protected]
Overview of Session
What is endowment?
Should my station have an endowment?
How does my station build an endowment?
What is Endowment?
Invested funds
Only income or portion of income is spent
Provides security for the future
The Endowment Fund
What is endowment?
Designated for endowment by donor.
What is quasi-endowment?
Not designated for endowment by donor.
Designated by another person or group.
Often Board decision.
Decision can be changed.
Should my station have an endowment?
Do you have “permanent” and/or dependable sources of support?
Will dollars from those sources grow to meet needs in the future?
Endowment or Membership
Year 1: January—December, 2006
ENDOWMENT MEMBERSHIP
2 donors at $25,000 32 members at $40
Total Endowment: $50,000 Total $1,280
Income: $2,500 Income: $1,280
Expendable: $1,250 Expendable: $1,280
Year 2: January—December, 2007ENDOWMENT: No activity MEMBERSHIP: On-air, mail, phone, web
0 donors 26 members (80% renewal)
Total Endowment: $51,250 Total: $1,040
Income: $2,562.50 Income: $1,040
Expendable: $1,281.25 Expendable: $1,040
Balance Between Current and Future Needs
But my station needs money now!
If our best donorsmake gifts for endowment, we won’t be able to make our membership goal!
Will these donors stop making annual gifts?
Positioning of the gift.
Three-part approach.
Annual
Capital/endowment
Planned
Example: John and Jane Viewer
Increase annual gift to $10,000/year.
Contribute $10,000/year for endowment.
Consider a provision in their wills.
Total: $100,000 paid over five years.
Result of gift.
$50,000 for current support.
$50,000 for endowment.
Restricted or Unrestricted
Large gift = high likelihood of restriction.
Be flexible.
Develop gift opportunities to suggest.
Create specific, yet broad areas. Children’s programming
Educational outreach for children
Local program fund
Fund for arts and culture
Fund for news and civic affairs
How does my station begin an endowment?
Decision on organizational priorities.
Endorsement by appropriate leaders.
Policies and procedures.
Investment policies
Expenditure policies
Plan for seeking endowment gifts.
Short-term
Long-term
Making the Case for Endowment
What is the case?
Why should an individual make a gift for endowment?
Importance of endowment to station.
Example: WPSU Case for Endowment—Attachment 1
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
1996 2006
Budget Years
State appropriations: Special
State appropriations: General
Gain on perpetual trust
Interest income
Capital additions
Other grants
Community service grants
Miscellaneous income
Underwriting and advertising
Membership income
Sources of Revenue
Marketing of Endowment
Integrated development plan Communications
On-air spots Publications Website—Attachment 2 Other
Donor Profiles Highlight motivation
Volunteer Involvement Committee or other volunteer structure
Establishing Guidelines
Gift size for recognition Number of years for pledges Recognition
Within current recognition program
Additional recognition Duration of recognition
Restrictions Acceptance of planned gifts Sample plan and guidelines—Attachment 3
Special campaign or not?
Special endowment campaign
Increased visibility
Beginning and end of effort
Separate from other efforts
No special endowment campaign
Highlight as additional support
No end to effort
Integrated with other development programs
Setting Goals
Who are your prospects?
How long will it take to cultivate and solicit those prospects?
How will you determine other prospects?
What staff and volunteers are needed?
How does the effort fit within other development programs?
Setting Goals
Establish monthly, quarterly, and annual goals.
Number of prospects identified.
Number of contacts with potential donors.
By development staff.
By other staff.
By volunteers.
Total dollars received.
Total dollars pledged.
Number of donors.
Continued
Evaluating Success
Did you achieve your goals?
What did you do well?
Where could you have made improvements?
What is needed for future success?
How does the plan need to be revised?
Sharing the Stories
Judy Witt, Special Endowment Funds: WTIU, Bloomington, IN
Kurt Mische, Endowment through Planned Giving: Vegas PBS (KLVX), Las Vegas, NV
Tom Yourchak, Endow-A-Day: WPSU, University Park (State College), PA
Summary
Endowment gives the station security for the future.
Current support and endowment giving can be combined in a request.
Guidelines and goals are important.