Beyond the fundraising: Creating the lasting gift

As 2018 winds down, many nonprofits will begin taking a look at their year-end numbers, donation totals, and fundraising results for this year. But the New Year may bring a sense of foreboding, even for those nonprofits which experienced successful fundraisers in 2018. Nonprofit fundraiser professionals know that even after a successful season, the cycle of fundraising begins all over again the following year.

A typical nonprofit funding model begins with nonprofits scrambling all year to raise dollars, with much of it going to operations and programs. Numbers are assessed at the end of the fundraising season, and the fundraising cycle begins all over again the following year.

Creating an endowment fund helps nonprofits get off the hamster wheel.

An endowment fund is a permanent fund bestowed upon an institution, by one or more donors, to be used for a specific purpose. The goal of the fund is to be a long-term funding source for the named agency.

An endowment fund creates a new source of revenue for nonprofits. It breaks the cycle of nonprofits having to depend on the donor giving levels each year in order for the nonprofits to survive.

While the need for annual fundraising never really goes away completely, an endowment can relieve the burden of annual fundraising. An endowment fund, because it provides for giving in perpetuity, provides more stability and prestige for a nonprofit. It can allow for the expansion of programs, and creates a vehicle for accepting future gifts.

From the donor’s perspective, gifts to an endowment fund provide a way to leave a legacy. It allows the donors to give to the causes they care most about and ensures a way that those causes are taken care of forever.

For the fundraiser staff, the endowment fund provides one of the most important tools for connecting passionate donors to nonprofits. It establishes permanent donor relationships and funding sources that go far beyond the annual fundraiser. It creates a legacy of giving and permanent funding source for nonprofits.

Learn more about creating an endowment fund with New Braunfels Area Community Foundation at, or call us at (830) 606-9536.