Use challenge and matching grants to stimulate giving, increase the size of gifts, and bolster the energy and commitment of solicitors. Are spaced widely enough apart to avoid soliciting prospects who are still making payments of pledges from a prior endowment or capital campaign, to avoid giving the appearance of poor long-range planning, and to avoid negatively affecting annual fund campaigns. Must be large giver campaigns with one-third of the money coming from about 15 donors and the second third from about 75 additional donors. Must rate and then solicit prospects at their maximum giving potential, keeping in mind that some donors will surely give substantially beneath their capability and the organization's expectations. An endowment campaign raises money that the organization invests in income producing assets.
Endowment is a wonderful thing for a nonprofit organization.
Every dollar earned by an endowment is one less dollar that needs to be raised in an annual fund campaign. Endowment funds provide money for daily operations and extraordinary expenses, including capital expenditures. After all, an endowment gift is one that is made in perpetuity. Presents a more credible case for support of the future when there is current financial stability. Is produced only when the effort put into it is justified by the ability of endowment funds to earn substantial income.