In an environment where immediate community needs are never-ending (and actually seem to be skyrocketing), it’s really hard to carve out energy and time in your fundraising plan to make room for planned giving. We understand! The team at the Community Foundation knows how crucial it is for our community’s charities to attract as many donor dollars as possible to meet 2025’s mounting demands.
Ignoring a planned giving plan altogether, though, would be a mistake. You’d be sacrificing the long-term longevity of your mission. Intellectually, nonprofit fundraising professionals understand this. It’s just that it seems so hard to do at the moment, in the midst of turbulent times and emotional drain. 

Keep your planned giving spirits high by considering the following:

• Donors’ planned gifts, such as bequests, are often significantly larger than annual donations. For instance, the average charitable bequest can range from $37,000 to $78,360, which is substantially higher than typical annual gifts. That’s because donors can make planned gifts from assets they might not be able to part with during their lifetime, such as naming a charity as beneficiary of a retirement plan.
• You may discover that engaging a donor in planned giving conversations actually enhances the donor’s annual giving and campaign giving. This is because you’re engaging a donor through yet another touchpoint, reinforcing that there are multiple ways to align values and beliefs with thoughtful gifts to support your mission and your endowment. Indeed, donors who arrange for a planned gift may increase their annual giving by up to 75% and beyond!
• Keep in mind that planned gifts are often unrestricted. This allows you to allocate the funds where they are most needed and, importantly, grow your endowment.
• Pursuing planned gifts may not be as time-consuming as you think, especially given the return on investment often yielded by a planned gift. For instance, according to at least one study, for every dollar spent on promoting bequests, charities can expect an average return of $56.83, significantly higher than other fundraising methods.

The key is to make it easy. Here’s how:

• Small tweaks to your marketing materials. Try to at least mention the opportunity for planned giving somewhere on each marketing asset. Make sure your website mentions your endowment fund at the Community Foundation. The same goes for printed materials, one-pagers, email newsletters, and annual appeal letters. Even though you mostly are asking for a current gift, don’t forget to mention that you’re always open to a discussion about endowment gifts through a bequest or beneficiary designation.
• Always mention it, even if briefly. Talk with your major gift donors about the importance of your endowment and operating reserves to the organization’s ability to weather the ups and downs of the market and community needs. Sometimes donors don’t think about the “business” side of nonprofits. Even if your meeting is about something else, you can at least plant seeds. 
• Offer real inspiration. If you can, find a current donor who is open to your organization sharing the story of the donor’s intentions to leave a planned gift to your endowment fund in addition to making regular annual gifts. Role models are powerful.

We look forward to working with you to help you grow your endowment! The Community Foundation is committed to your success. We believe in philanthropy’s ability to improve the quality of life in our region through outstanding nonprofit organizations delivering services to people who need it most. Thank you for all you do.

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

Repeat, repeat, repeat. You may feel like you are constantly talking with your donors about the benefits of giving appreciated stock. Your talk track may go something like this:

• “Before you reach for your checkbook to make a gift to our endowment fund at the Community Foundation, consider giving highly-appreciated stock.”
• “Appreciated stock is frequently a far more advantageous gift to charity than giving cash.”
• “When you make a gift of shares held for more than one year, you’ll typically be eligible for a charitable deduction at the shares’ fair market value on the date of the gift.”
• “Plus, our endowment fund is a charity and therefore capital gains tax won’t be triggered on the sale of the shares, leaving the full fair market value available to grow our endowment and pave the way for the future success of our mission.”
• “By contrast, if you’d sold the shares yourself and given the proceeds to our endowment fund, you’d owe capital gains tax. This can be a big hit if you’ve held the shares for many years and they’ve got a low basis.”
• “It’s easy to transfer stock to our endowment fund because we work hand-in-hand with the Community Foundation team.”

You say all of this so much that you’re sick of it, so surely your donors are sick of hearing it too, right? Wrong. Your donors don’t live and breathe charitable giving like those of us who work in the nonprofit sector day in and day out. So, not only is the subject matter sometimes challenging, but it’s also likely that donors are not paying attention most of the time. Indeed, a lot of donors are missing out on the benefits of giving stock instead of cash.

Building your endowment fund, like any type of fundraising, is a long game. You have to keep repeating key messages so that the point finally gets across, often when the timing is just right and the topic of tax planning or charitable giving happens to be on a donor’s mind.

The team at the Community Foundation is always happy to serve as a sounding board for key messages and strategies to build your endowment, one person and one gift at a time, over and over–and over–again. We’re honored to work with you!

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

The Community Foundation is honored to work with so many wonderful nonprofit organizations in our region that are improving quality of life every single day. We know that it’s important for you to grow endowment assets to create a permanent source of support for your mission.

You’ve likely made it a priority to provide ongoing education and information to your donors to help them understand how your endowment works and why it’s so important to the future of your organization. Occasionally, a donor may ask you about the difference between making a gift to support your endowment, or, in the alternative, establishing a separate endowment fund at the Community Foundation to support your organization.

Here’s a little background that may help you explain the differences to your donors. In either case, our team can help, so please do reach out.

Building your endowment fund. Many donors will want to support your endowment fund held at the Community Foundation. Your board of directors may from time to time elect to make transfers from your organization’s assets to the fund. Your organization’s endowment fund is sometimes referred to as “quasi-endowment” because your board of directors has some degree of flexibility to access the principal for certain stated purposes such as emergencies. Annual distributions to supplement your organization’s budget are often made from the endowment fund based on market value percentages.

Donor-designated endowment fund. Sometimes, a donor would like to support your organization by establishing a separate and permanent designated endowment at the Community Foundation, whether during lifetime or through a bequest. In that case, the board of directors and staff at the Community Foundation will oversee income payments to your organization and also ensure that the principal stays intact in perpetuity. In many cases, a donor will want to structure an endowment gift as a designated fund to benefit your organization while also leaning on the Community Foundation for support. The donor can name the fund whatever they’d like (e.g., the Smith Family Endowment Fund).

The Community Foundation team is experienced at managing the accounting, investment, and distribution aspects of all types of endowment funds. When you work with the Community Foundation, it’s convenient and rewarding to establish and grow your organization’s endowment, as well as offer donors the option to set up a separate named endowment fund. Both types of gifts help your mission stay strong and improve the quality of life for future generations.

​This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

Opinion by Cynthia H. Shabb
Originally Published in the Grand Forks Herald on March 14, 2025

Over the past seven weeks, the president of the United States has signed dozens of executive orders covering a broad range of issues. The president and Congress have also engaged in other actions to cut federal funding. This has created a state of uncertainty for nonprofit organizations. Some federal grants and contracts have been paused or canceled, immediately affecting nonprofit work. There is a lack of information about current and future grants.

Over 300 nonprofit organizations contribute to the social environment in and around Grand Forks by providing countless services to the community. This includes housing, food security, health care, mental health care, social services, domestic violence services, education, immigrant integration, civic and social clubs, sports leagues, fitness centers, arts programs, environmental services, animal welfare, religious organizations, and more.

Nonprofit organizations also drive the economy by being a major employer, engaging high numbers of volunteers, and generating significant revenue for the local economy. Nonprofits pay wages, unrelated business income and other taxes, and are purchasers of goods and services.

It is important to understand the significant impact nonprofits have, not only in our local community, but also in the state. The North Dakota Association of Nonprofit Organizations (NDANO) created a statewide Sector Report in 2022. It reported that there were 3,886 nonprofits in North Dakota who employed 54,953 people, paying $2.6 billion in annual wages. 218,019 North Dakotans volunteered, contributing 15.6 million hours of services equivalent to $377.8 million. Nonprofit organizations have an incredible financial impact on both local and state levels.

The actions of the federal government are forcing nonprofit organizations in Grand Forks and the surrounding region to consider what they will do as their federal funding changes. They have already had to reduce their workforce, reduce and eliminate programs and services, and more reductions may come. Some nonprofits may even have to close their doors. This will put a heavier burden on local communities, states, private grantors, and individual donors to ensure organizations can continue to operate.

Every member of our community benefits from the work of nonprofit organizations in one way or another. It is vital to contact legislators, sharing why local nonprofits are important. Fully executed executive orders and federal funding cuts will have negative impacts on our community. Additionally, each one of us should give what we are able to support nonprofits in our area.
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Cynthia Shabb, of Grand Forks, is the executive director of the Global Friends Coalition. This letter is a collaborative effort of nonprofit organizations in the Grand Forks region who want to promote, protect and strengthen the nonprofit sector.

April 15 is right around the corner! Now is a good time to review a few basic tax principles related to charitable giving so that you’re prepared for donor conversations. Tax planning is on their minds, and you don’t want to miss an opportunity to secure a gift to your endowment fund.
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Your donors give for lots of reasons other than a tax deduction.
With taxes on the minds of so many donors this time of year, it’s important to remember that it’s not all about the tax deduction! Charitable giving is a priority for the vast majority of affluent families. Indeed, among people who own investments of $5 million or more, 91% of those surveyed reported that charitable giving is a component of their estate and financial plans. In another study, most affluent investors cited reasons for giving well beyond the possibility of a tax deduction and would not automatically reduce their giving if the charitable income tax deduction went away. During the fundraising process, be aware of donors’ non-tax motivations for giving, such as family traditions, personal experiences, and compassion for your mission.

Your donors may still default to giving cash, so you have to stay in front of them.
Many donors simply are not aware of the tax benefits of giving highly-appreciated assets to their favorite charities. Even if you feel like you say it a lot, keep saying it! Donors often forget or are in a hurry and end up writing checks and making donations with their credit cards. It’s really important to remind your donors about the benefits of donating non-cash assets such as highly-appreciated publicly-traded stock, or even complex assets (e.g., closely-held business interests and real estate).

The Community Foundation can help you work with donors to give highly-appreciated assets in lieu of cash to your endowment fund. This in turn can help donors reduce - significantly - capital gains tax exposure, and they can calculate the deduction based on the full fair market value of the gifted assets.

Your donors may not remember the basic rules of deductibility.
It’s important to know that the deductibility rules are different for donors’ gifts to a public charity (such as your endowment fund at the Community Foundation) on one hand, and their gifts to a private foundation on the other hand. Donors’ gifts to your organization directly, or to your endowment fund, are deductible up to 60% of AGI for cash gifts and 30% of AGI for gifts of other assets. Gifts to private foundations are deductible up to 30% of AGI for cash gifts and 20% of AGI for gifts of other assets. In addition, gifts to public charities of non-marketable assets such as real estate and closely-held stock typically are deductible at fair market value, while the same assets given to a private foundation are deductible at the donor’s cost basis. This difference can be enormous in terms of dollars, so make sure you let your donors know about this if they are planning a major gift.

Make it a habit to repeat the tax basics in your donor communications. This will help you grow your endowment fund not only during tax time, but also throughout the year. As always, the Community Foundation is here to help! Reach out anytime!

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

As you and your team review lists to identify potential endowment and legacy donors, it’s easy to slip into the habit of zeroing in on donors who are well-established in their careers and businesses, nearing retirement, or already retired. Of course, you’ll want to target these groups because they are likely to have the capacity to make large gifts, and they may be in a position to revise their estate plans or beneficiary designations to include your endowment fund.

But don’t stop there! Expand your endowment and legacy fundraising outreach to include not only Baby Boomers, Gen X, and Millennials, but also Gen Z. Gen Z’s philanthropic engagement defies stereotypes about short-term thinking, with 84% already supporting causes through donations, volunteering, or advocacy—demonstrating a readiness to commit to long-term impact despite their youth. Certainly their financial contributions may be smaller due to early-career stages, but their focus on social justice, climate action, and equity aligns with the legacy-building nature of planned giving.

Here are three strategies to keep in mind:

• As Gen Z donors get into the workforce, they’ll be enrolling in 401(k)s and other retirement programs through their employers. This presents an opportunity for you to educate donors early in their careers about the significant tax benefits of naming a charity as the beneficiary of their retirement plans.
• Regularly include messaging in your fundraising communications about the importance of your endowment to your mission’s sustainability for generations to come. The role your organization plays in the community’s future is an important message for Gen Z to hear repeatedly.
• Use messages that demonstrate trust and transparency because these concepts resonate particularly well with Gen Z’s values. This helps signal that your mission is worth supporting long-term, an important factor in light of Gen Z’s eagerness to plan ahead.

Proactively engaging Gen Z now will help your organization secure future revenue and build on young people’s sincere desire to make a difference. Please reach out to the Community Foundation team to discuss ways you can engage Gen Z to strengthen your endowment and legacy giving strategies.

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

The team at the Community Foundation is always happy to help you evaluate potential gifts to your endowment fund. This is especially the case when a donor proposes giving something other than cash or marketable securities.

When a donor mentions the possibility of giving real estate or closely-held stock, for example, please reach out to our team. One of the benefits of housing your endowment at the Community Foundation is that we can serve as your back office for complex gifts as well as serving as a sounding board for giving strategies in general.

One of the most important factors to remember is that valuing and accepting complex gifts like real estate and closely-held stock is not easy! The Community Foundation will help you make sure that the donor and the donor’s advisors are aware of the IRS’s rigorous requirements for securing a qualified appraisal of a complex gift. Failure to follow these rules could wipe out the otherwise excellent tax benefits to the donor. These assets are called “complex” and “hard-to-value” for a reason!

Even though complex gifts can present inherent challenges, they’re still worth pursuing. Charities that cultivate hard-to-value assets such as real estate and closely-held stock can unlock significant advantages for both their missions and their donors. Remember that unlike gifts of nonmarketable assets to a private foundation, a donor’s gift of a nonmarketable asset to your endowment fund or other public charity can qualify for a full fair market value charitable deduction, up to 30% of AGI, and also avoid capital gains tax.

What’s more, beyond real estate and closely-held stock, the Community Foundation is happy to work with you and a donor to explore gifts of other complex assets, such as cryptocurrency, NFTs, and intellectual property, which expands philanthropic opportunities for donors who are business owners and investors in alternative assets.

Keeping an eye out for opportunities to attract hard-to-value assets will help you build a resilient endowment fund at the Community Foundation while also empowering your donors to optimize their financial and philanthropic legacies. The Community Foundation helps you bridge expertise gaps, handle asset liquidation, invest the proceeds, and meet regulatory requirements so that you and your team can focus on donor relationships and impact. Please reach out to talk with our team.

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.

​Family Day began at the North Dakota Museum of Art under the leadership of Sue Fink in 2004. The original goal of the program, initially called Saturday Art Workshops, was to provide children and their families an opportunity to engage in art activities while exploring a wide variety of media with modeling and guidance.

As the current Education Director, I am continually striving to bring fresh and exciting experiences to our Family Day programming. My goal is to ensure that everyone feels welcomed at our museum, and for young people, the chance to connect with art can have a lasting impact on their lives. Equally important are the parents and caregivers who bring their children to these events, encouraging creativity and fostering a love of art that extends beyond the museum walls.

For over twenty years, we’ve been inviting participants of all ages to explore diverse artistic practices while surrounded by stunning artwork in the spacious museum galleries. In 2024, we were proud to welcome over a thousand curious guests, alongside numerous arts organizations and local artists who partnered with us to foster a deeper appreciation for art and highlight its significance in our community.

Family Day events are always free and open to the public, ensuring accessibility for all families. We are able to keep it that way thanks to the generous support of foundations, businesses, and individual donors who believe in the power of art to connect and inspire. Local businesses contribute through in-kind donations, and individuals support the program through their gifts.

The support from the Community Foundation makes it possible for us to provide materials, bring in guest artists, and maintain a welcoming space where families can experience the joy of creating together.

Each event is held on the fourth Saturday of select months (October, November, January, February, March, and April) from 10:00 AM to 12:00 PM, offering hands-on projects and unique collaborative experiences. The atmosphere is casual, encouraging families to drop in, create, and leave when they’re ready. These events inspire children by connecting our world-class exhibitions to real hands-on experiences—just like the artists they see on our walls.

For example:

• For A Beautiful Mess: Knotters and Weavers of the Vanguard, we created woven baskets.
• For New Acquisitions, we explored a variety of artistic styles, encouraging participants to experiment with different approaches inspired by the artworks, such as air-dry clay, collage, and watercolor paint.
• For Maurice Sendak: 50 Years, we partnered with local libraries and community organizations to celebrate the beloved author and illustrator. We also created monsters inspired by Where the Wild Things Are.
• This fall, for Stories of Place, we explored paper marbling and pin-and-thread art.
• Most recently, for Women at War: An Exhibition by Contemporary Women Artists from Ukraine, we explored traditional Ukrainian folk arts, including Motanka doll-making.

One of the most exciting aspects of Family Day is witnessing the creativity of our young participants. At a recent event, a child made a Motanka doll with a mohawk, putting their own twist on a Ukrainian tradition. During a collage activity, two sisters collaborated on a piece they called "Bird Lady", featuring photos of Queen Elizabeth surrounded by dollar bills and birds.

In addition to being inspired by our exhibitions, I always try to introduce a new medium for our guests to explore. We’ve had a variety of activities, including painting, clay, fiber arts, scratchboard art, pumpkin decorating, and more. Our volunteers play a key role in making it all come together, assisting in the activities and guiding participants as they explore their creative ideas. It’s a fun, relaxed environment where everyone can create something special to take home, along with the skills and confidence to recreate these projects at home, making art more accessible for families to continue enjoying together.
Upcoming Family Day Activities:

• February 22 – Exploring Ukrainian traditions
• March 29 – Experimenting with various art techniques and media
• April 26 – Creating prints and paintings

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Thanks to our community of supporters, Family Day continues to bring people together in the spirit of creativity and discovery.

MJ McHugh, Education Director, NDMOA

​January

• You’ve likely already reviewed your year-end activity to determine which donors were most active at year-end, and which of these active donors have already established a planned gift or have otherwise supported your endowment. 
• As you finished up your thank you notes, you very likely ran across at least a handful of donors that seemed ready for deeper engagement. Let’s carry that momentum forward!

February

• Reach out one-by-one to the donors you noted in January as potentially ready for deeper engagement. Messages along the lines of planning for the year ahead and taking advantage of QCDs early in the year will resonate well.
• Begin planning outreach to donors related to upcoming tax time. This is an excellent time to plant seeds with donors because they will be reviewing last year’s financial and tax matters with their advisors. 
• Consider also deploying content that focuses on involving family in supporting your organization, aligning loosely with Valentine’s Day. You can also showcase heartwarming stories of impact.
• Participate in Giving Hearts Day.

March

• Continue your tax-time outreach noted above.
• Be sure to include reminders about the benefits of giving appreciated stock and the charitable deduction in general. This is important because as your donors review their tax return information for 2024, they may notice instances where they could (should!) have given appreciated stock instead of cash. They might also realize that they should have given more to charity than they did. This can help you generate gifts to your annual fund and endowment.

April

• Continue tax time reminders in all of your one-on-one communications. If you’ve promoted tax messages as noted above for March, you can get even more mileage out of the content by forwarding your March communications to donors in real time as you are on the phone with them. Sometimes people miss things in their email inboxes, but you always get a second chance to send it during a phone conversation or even live during a meeting.
• If you send an April communication, consider using “spring cleaning” types of themes about getting organized and planning 2025 charitable gifts to your annual fund and endowment fund. This can help increase donor giving during the first half of the year.      

May

• This is the time of year that donors may be gearing up for some down time during the summer. This is an excellent time to lean into conversations about bequests, IRA beneficiary designations, and other types of planned gifts to your endowment.

June

• With tax time behind them, and the year-end rush still months away, donors and their advisors typically have more bandwidth to dig into discussions about including your organization’s endowment in an estate plan. Just because the pace is slower doesn’t mean the energy takes a hit! This is a great time to catch donors in a more relaxed mode.
• Focus your content on mid-year trends and summer reading ideas to learn about charitable giving.

July

• This is a good time of year to zero in on legislative and tax law updates. By this time in the year, we have a pretty good idea of legislative agendas. Plus, you want donors to start thinking about you for year-end transactions.
• ​Considering signing up for Giving Hearts Day for 2026.

August

• Make a Will Month is a useful time for bequest and estate planning reminders, incorporating charitable planning into a business succession plan, planned giving, and giving while living. Use these themes in your communications.
• Content can touch on not only Make a Will Month, but also forecasting the busy third and fourth quarters. Now is the time for donors to discuss endowment gifts, major gifts, and planned gifts.

September

• This is a really busy time of year, but you should not stop the drumbeat!
• Content can include encouraging donors to start looking at how their giving goals are shaping up for the year. If a donor has expressed intentions to set up a planned gift to your endowment fund, or give to your endowment fund via a Qualified Charitable Distribution, it’s wise to set these transactions in motion now to avoid the year-end rush.

October

• This is a particularly good time for personal outreach to all donors who have given to your endowment fund in the past or expressed interest in doing so. Work your way through the list, touching base personally with each donor.
• Consider planning an outreach campaign to drop off holiday cards, cookies, or other small gifts to your endowment donors and legacy endowment donors.

November

• Focus your communications on reminders about the wide variety of assets that can be given to your endowment fund, and year-end deadlines for specific types of gifts such as checks, QCDs, gifts of publicly-traded stock, credit card gifts, etc.
• Emphasize the tax benefits of giving highly-appreciated stock to your endowment fund, as well as the benefits of naming your endowment fund as the beneficiary of an IRA.
• Get your donors and prospects excited for Giving Tuesday on December 2, 2025.

December

• Participate in Giving Tuesday.
• Be highly responsive to all donor inquiries; same day responsiveness is crucial, and ideally within the first couple of hours.
• Focus your marketing content on the importance of endowment giving and additional year-end tips.                         

​2025 is shaping up to be a very interesting year for tax policy, to say the least! 
​
The Republican-led Congress and White House are aiming to use the budget reconciliation process to extend the Tax Cuts and Jobs Act (TCJA) of 2017. This process allows them to bypass typical filibuster rules and require only a simple majority of 51 votes in the Senate. So what does this mean to you and your colleagues and the way you should approach generating support for your endowment fund at the Community Foundation? 

The Community Foundation will help keep our nonprofit partners up-to-date on potential tax law changes in 2025 related to the scheduled expiration of provisions in the Tax Cuts and Jobs Act (TCJA) of 2017, and what might happen if the TCJA provisions wind up expiring instead of being extended.
Here are three things that are important to know: 

Potential reduction in estate and gift tax exemption
The estate and gift tax exemption is slated to decrease significantly at midnight on December 31, 2025. Currently, the exemption is $13.99 million per person. After 2025, this could be reduced to approximately $7 million per individual and $14 million per couple. This change may impact charitable giving strategies, particularly for high net-worth donors who use estate planning as part of their philanthropic efforts.

Changes to charitable deduction limits
The TCJA temporarily increased the deduction limit for cash contributions to public charities from 50% to 60% of adjusted gross income (AGI). If this provision expires, the limit may revert to 50% of AGI. This reduction could affect the tax benefits for donors making large charitable contributions, potentially influencing their giving decisions.

Increase in standard deduction and impact on itemized deductions
The TCJA significantly increased the standard deduction, which led to a reduction in the number of taxpayers itemizing deductions. If these provisions expire, the standard deduction could revert to lower pre-TCJA levels. This change might increase the number of taxpayers who itemize, potentially making charitable deductions more attractive for a broader range of donors. However, it's important to note that the overall impact on charitable giving could be complex, as it may be influenced by other factors such as changes in tax rates and the reinstatement of certain itemized deductions.

These potential changes underscore the importance for charity fundraisers to stay informed about tax law developments and to work closely with donors and their financial advisors to navigate the evolving landscape of charitable giving strategies.

For context, if you like to get in the weeds, we recommend taking a look at a recent study that breaks down the flow of capital into the nonprofit sector.
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

Especially at the beginning of a new year, the team at the Community Foundation fields a lot of questions from fundraising professionals about strategies for increasing gifts to an organization’s endowment fund. Not surprisingly, a very common question is this:

“How can we get our board members more involved in endowment fundraising?”

And of course, that is an important question. Board members’ active participation in endowment fundraising can provide a big boost to achieving your organization’s long-term financial stability.
Here's a five-point formula for getting your board involved in growing your endowment in 2025 and beyond. 

Step 1: Set the stage
Help board members fully understand the importance of endowment fundraising. Let them know that a strong endowment provides financial stability, supports long-term planning, and helps weather economic uncertainties. Start the year with a dedicated segment in your first board meeting to discuss the status of your endowment and its significance to the organization's future. Remember, transparency is key. Be open about your endowment's current status, even if it has been affected by market fluctuations. Honesty builds trust and motivates board members to take action.

Step 2: Inspire action
Present a confident and enthusiastic approach to fundraising for the year ahead. Emphasize that your organization is proactively addressing financial challenges while others might be hesitant. Be sure your board members know that a strong endowment acts as a buffer during economic downturns, ensuring the continuity of your mission.

Step 3: Equip your board members
Your board members certainly do not need to know all the details of how a gift to your endowment can be structured. Indeed, board members don’t need to know any details; they simply need to be armed with just enough information to be able to listen closely for opportunities when a potential donor mentions anything related to charities or financial planning. Then, it is natural for the board member to make an introduction to your team. Jumping off points for an introduction, and suggested board member responses, include: 

• Required Minimum Distributions from an IRA (“There are ways you can send funds from your IRA directly to a charity. I’ll connect you with Sally Jones at ABC Charity. I’m on the board and the organization does amazing work.”)
• Appreciated stock (“You probably already know that appreciated stock makes a great gift to a charity. I’ll connect you with Sally Jones at ABC Charity. I’m on the board and the organization does amazing work.”)
• Upcoming events (“I am on the board of ABC Charity. There’s an event coming up that you’d really enjoy. I’ll connect you with Sally Jones so you can learn more.”)

Step 4: Make it as easy as possible
Keeping it simple is key! Complexity is a known barrier to a donor’s commitment to give. Meet individually with each board member to discuss potential involvement in endowment fundraising efforts. You may be pleasantly surprised to uncover unique skills, connections, or resources that could benefit your endowment strategies. Along these lines, take advantage of events where board members can engage with potential endowment donors in a comfortable setting. Assign specific, manageable tasks to each board member based on skills and preferences, including asking them to seek out specific donors. And, importantly, encourage board members to make their own contributions to the endowment, demonstrating their commitment to the cause. This makes it much easier for a board member to talk with potential donors because they can speak from personal experience. 

Step 5: Celebrate success
Keep the board informed about the progress of endowment fundraising efforts, celebrating successes and addressing challenges. Acknowledge and appreciate the efforts of board members who actively participate in fundraising activities. Remember, activity creates results! If board members are out in the world talking about your organization and the endowment, good things will happen! 

As always, the team at the Community Foundation is here to serve as a sounding board as you implement strategies to encourage board members to become active participants in endowment fundraising, ensuring the long-term financial health of your organization.

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

Philanthropy professionals have long recognized the importance of emotional engagement in fundraising, particularly during annual campaigns or initiatives focused on immediate donations. Indeed, recent research underscores the critical role of emotional intelligence in successful fundraising. 
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When it comes to charitable gift planning, however, such as helping a donor structure a legacy endowment gift, it’s tempting to approach the process as a primarily rational exercise. This is understandable given the complex tax and legal considerations involved in structuring various giving vehicles such as trusts, bequests, foundations, donor-advised funds, and beneficiary designations. Of course, it is crucial to address technical aspects to ensure donors' charitable intentions are fulfilled with tax benefits and financial goals in mind. 

At the same time, you’ll want to be sure that the emotional dimension of charitable gift planning isn’t overlooked. Legacy giving offers psychological benefits. Endowment gifts, in particular, can offer donors a sense of immortality and a way to perpetuate their values beyond their lifetime. No doubt you’ve watched this in action as you’ve helped donors structure legacy gifts to your endowment fund at the Community Foundation, and perhaps you've even played a role in facilitating a donor’s unique emotional and reflective process when considering such a gift.

Encourage your donors to consider the benefits of a legacy gift:

• Create a lasting impact that aligns with their personal values
• Leave a meaningful legacy that extends beyond their lifetime
• Culminate a long history of support for your organization in a significant way

To maximize success in legacy fundraising, nonprofit organizations should strive to engage both the hearts and minds of your donors. Consider sharing inspiring stories and testimonials that illustrate the long-term impact of legacy gifts. To further build an emotional connection, you might even offer the donor exclusive events or site visits to help donors visualize the future impact of their gifts. On the rational side of the equation, you’ll find that working with the Community Foundation team helps you provide clear information about the tax and legal aspects of various giving vehicles. Our team can also help you address concerns about administrative complexities and provide support throughout the giving process.

Please reach out anytime to the team at the Community Foundation to help you implement a balanced approach to tap into donors' emotional desires to make meaningful, lasting gifts while also ensuring that all technical aspects are properly addressed. We are here to help you develop more meaningful connections and ultimately achieve greater success in securing endowment and legacy gifts to keep your mission strong for generations to come. 

This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

Year-end gifts are a crucial component of every nonprofit organization’s operating budget, and December is a wildly busy time! Even with so many transactions flying around, it’s still important not to lose sight of the relationship side of fundraising, especially so that you and your team can continue to intentionally and methodically cultivate gifts to your endowment fund at the Community Foundation.
 
More than half of nonprofit organizations say they don’t have donor engagement plans. That’s a lot of missed opportunities! Enhancing donor engagement by creating entry points for their children is a strategy that can deliver a lot of good throughout the year, year after year. 
 
Here are three ways to plant seeds with donors about how leaving a legacy to your organization’s endowment creates meaningful opportunities for family engagement:
 
Help donors celebrate their legacies. Encourage donors to talk with their children about why they’ve chosen to support your organization over the years, and why they are particularly interested in ensuring that your mission stays strong for generations to come. Offer your donors tangible examples of how your mission could help their children–and their children’s children and grandchildren–at critical junctures many years in the future. This helps reinforce the power of endowment giving across generations. 
 
Offer site visits, with a twist. Naturally, you and your colleagues regularly encourage donors to see your work up close. But have you considered encouraging donors to bring their teenage or adult children along to a site visit? And have you made sure that during the site visit, you are pointing out longstanding programs that are made possible only because of gifts to your endowment fund over the years? Wrapping these two elements into your site visit strategies can give your endowment fundraising an instant boost. 
 
Make it easy for young donors to donate to your endowment. It’s never too early to start talking about endowment gifts! If your fundraising strategy includes outreach to children of current donors, or emerging philanthropists in general, be sure your communications and marketing materials include at least basic language about supporting your endowment. You want all of your donors to see that giving to your endowment fund at the Community Foundation is always an option, at every stage of a donor’s philanthropic journey. 
 
Please reach out to the team at the Community Foundation to explore these and other ideas for engaging young givers in your endowment-building efforts. We are here to help! 
 
This articles is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

​For decades, bequests have been a small but relatively steady component of total charitable giving in the United States. You certainly understand the importance of bequests to growing your endowment fund at the Community Foundation. To that end, your fundraising materials likely include language to encourage donors to include endowment bequests in their wills or trusts. A donor can leave a particular dollar amount through a “specific” bequest, or leave a portion of the estate or trust remaining after taxes, expenses, and distributions to family and other beneficiaries (known as a “residuary” bequest). A donor can also name your organization’s endowment fund as the beneficiary of an IRA or other retirement plan. 
 
So, after a donor passes away, when does your endowment fund actually receive the money? It depends on the type of bequest, and the money rarely arrives quickly. But, the Community Foundation can help. For example:
 

• If a donor names your endowment fund at the Community Foundation as the beneficiary of an IRA, the Community Foundation will pursue a transfer of the proceeds from the IRA administrator as quickly as possible. 

 

• In the case of a donor who names your endowment fund as the recipient of a bequest in the donor’s will, which is subject to probate, full distribution of a residuary charitable bequest will typically occur after the probate process is completed. A specific bequest of a certain dollar amount may be released in a “partial distribution” earlier in the probate process. A complete probate process can take several months or even more than a year, depending on the complexity of the estate.

 

• If a donor has left a charitable bequest in a trust rather than a will, and therefore the estate is not subject to probate, distribution of the bequest may happen faster, but still, especially in the case of a residuary bequest, the trustees will want to ensure that all expenses, taxes, and other liabilities of the deceased donor can be covered before the trustee makes any distributions to beneficiaries, including to your endowment fund at the Community Foundation.

 
One of the benefits of working with the Community Foundation is that the Community Foundation team will take the lead on pursuing distributions from donors’ bequests to your organization’s endowment fund. Please reach out anytime with questions and to learn more.

This articles is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

Every organization dreams of that game-changing, multi-million dollar endowment bequest that comes as a complete surprise. Often it can seem totally random when we hear about a donor who leaves a major gift to a charity in a will, trust, or beneficiary designation. And sometimes it is unexpected. But in many cases, the “surprise” should not have come as a surprise because it was the result of years of careful seed-planting and intentional relationship-building.
 
Of course, nonprofit fundraising professionals are well aware that cultivating small gifts can lead to large bequests. The question is, though, how can you give your organization the very best chance of receiving a gift like this? Not surprisingly, it all starts with small steps that add up to big steps. Intellectually, we understand this. But it can be so hard to be patient. Stick with it, though! Never give up on letting your donors know that any size gift makes a difference. 
 
Here are suggested messages you can use to encourage donors to consider making small gifts to your endowment fund:
 
We want to help you support our organization’s endowment fund at a financial level that meets your charitable giving budget. At every level of giving, your endowment support is a catalyst for improving quality of life. Whether your gift to our endowment fund is a $250 credit card donation, a $2500 check, $25,000 worth of appreciated stock, or much more through a bequest or IRA beneficiary designation, you’re making a difference. We’re grateful for your support because it helps ensure that our organization’s mission stays strong for years to come. 
 
As you look ahead toward your year-end giving, you might be considering transferring highly-appreciated stock to your donor-advised fund at the Community Foundation. Remember that our organization’s endowment fund is held at the Community Foundation, too, making it very easy for you to use your donor-advised fund to support our endowment through year-end gifts of any amount. 
 
Consider that small donations from a large number of people can make a huge difference. Please help us spread the word! Forward our emails, share our posts on social media, and tell your family and friends that every dollar given to our organization’s endowment fund paves the way for a brighter future in our community. 
 
In so many ways, whether gifts are large or small or somewhere in between, philanthropy creates the margin of excellence that helps communities, families, and individuals thrive. The team at the Community Foundation is here to help you inspire your donors to support your endowment fund at every level. 
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

You and your team are certainly familiar with annual giving strategies to encourage donors to regularly support your operating budget. When it comes to endowment fundraising, though, many organizations tend to think about endowment campaigns as isolated events every few years, perhaps executed alongside a capital campaign.
 
As the fundraising environment gets tougher, especially in an election year, take a look at your approach to engaging donors in endowment giving on a regular basis, not just during the occasional campaign every few years. Indeed, national annual events like National Philanthropy Day and GivingTuesday create strong opportunities to engage your donors in endowment-focused conversations. 
 
The team at the Community Foundation is happy to offer ideas for ways to make regular, consistent giving to your endowment fund an attractive–and even habit-forming–practice among your donors. Whether a donor’s cadence of contributions is monthly, quarterly, semi-annually, or annually, the consistency delivers many benefits. Of course, your endowment will grow, which is a huge benefit. But your organization also will benefit from the communications and engagement opportunities. Here’s how: 

• As individual donors’ contributions to your endowment fund grow over time, you’re able to show them how they’ve personally helped build that all-important nest egg to ensure that your organization’s mission stays strong. 
• Consider periodically letting individual donors know just how much they’ve contributed to your endowment fund over time, and translate that amount into the income you’re able to devote each year to improving lives. When a donor sees what a big difference this can make in perpetuity, they’ll be pleased and maybe even surprised.
• Showing these results during a donor’s lifetime is an excellent platform for a serious discussion about the donor leaving a significant bequest to your endowment. It’s much easier for a donor to envision the future impact of an endowment gift when they’ve witnessed present impact. 

 
Reach out anytime to the team at the Community Foundation. We’re happy to help you establish endowment-building strategies to ensure that your mission stays strong for generations. If your organization has not yet established an endowment fund at the Community Foundation, please reach out. There’s no better time than the present to begin paving the way for a bright future.
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

​2024 is rapidly drawing to a close! You’re likely making plans to send a letter to your donors asking them to consider making a gift as part of your annual appeal strategy. Don’t miss this opportunity to weave in messages about your endowment fund at the Community Foundation and how important it is for donors to support both current and future needs of your organization.
 
Here are a few tips and suggestions for crafting an annual appeal letter to inspire both current and endowment gifts.  
 
Cast a Wide Net
 
Somewhere in your letter, be sure to illustrate the various ways donors can support your mission. For example, you could consider language like this:
 
Our community is better because of donors like you who’ve included our organization in your philanthropy plans and charitable giving practices. Perhaps you give every year. Perhaps you’ve established a designated fund at the Community Foundation to support our organization. Or maybe you’ve already made arrangements for a major gift to our endowment fund at the Community Foundation. You might have even updated your estate plan to leave a bequest or IRA beneficiary designation to our endowment fund. Whatever way you’ve chosen to support our mission, we’re grateful! 
 
Offer Specifics
 
Let donors know about a few of the very specific ways your organization has been making a difference. For example:
 
Thanks to our donors’ generosity in building our endowment fund over the years, our organization was able to add two case managers to our team this year. This, in turn, means that we can ensure that nearly 50 additional children can receive the care they need. Donor support has also enabled us to provide our case managers with iPads, vastly increasing the efficiency of reports and communication, which in turn means we have more time to spend one-on-one with the children we serve.  
 
Tell Them Exactly What To Do
 
A call to action is essential, of course, but make sure you offer options to make it as easy as possible for donors to make a gift. Offering options also shows that you are flexible and signals to donors that you’re open to a live conversation, which is the gold standard. Consider the following example:
 
We’d be honored to receive your gift in whatever way works best for you. You can donate online at [include URL] or mail a check to the address below. And, importantly, we’d be happy to receive your gift of appreciated securities, which can be highly tax-advantageous. Please reach out today to talk about a potential stock gift. We work with the Community Foundation to make it easy and seamless for you to make a gift to our organization’s current programs, endowment fund, or both. 
 
For more ideas about how to engage donors through your annual appeal letter, please reach out! The team at the Community Foundation is honored to be your partner as you grow your endowment fund and expand your organization’s ability to serve our community.
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

By Revey Hertzler

​Founded in 2018 by a group of dedicated individuals in Grand Forks, ND, Journey Home Animal Rescue has emerged as a beacon of hope for stray and unwanted animals in the region. This foster-based rescue organization was brought to life by four passionate animal advocates who had previously volunteered with various animal rescues. They identified a critical need for sanctuaries where animals could receive care and love before finding their forever homes. "Our goal was to offer a safe haven for stray and unwanted animals through foster homes," says Leslie Hagert-Rethemeier, one of Journey Home’s founders. "We ensure these animals are spayed and neutered, vaccinated, and cared for before rehoming them."

The Vital Role of Foster Families

Foster families provide temporary homes where animals can experience love, safety, and care. They play an important role in the wellbeing of rescued animals, helping them transition from a life of uncertainty to one filled with hope and stability. "Foster families are the heartbeat of the organization," Hagert-Rethemeier says.

These families not only offer shelter but also help in socializing the animals and preparing them for adoption. They show the rescues kindness, security, and healthy interaction. Throughout their journey, the foster families document their experiences, capturing moments and writing bios for the Journey Home website to help potential adopters get to know the animals better.

The Importance of Volunteers

Journey Home Animal Rescue operates entirely with the help of volunteers. One of the most pressing issues is the sheer number of animals in need compared to the number of available helping hands. "The overwhelming number of unwanted and stray animals in North Dakota is a major challenge," explains Hagert-Rethemeier. Despite these hurdles, Journey Home remains committed to its mission, continually seeking innovative methods to recruit more volunteers and expand their reach.

Volunteers are recruited through various channels, including word of mouth, social media, and local events. "We have about 10 different programs that are always recruiting new support," Hagert-Rethemeier says. The dog walking program, for example, requires consistent attention, and while some volunteers are able to commit multiple shifts a week, the organization still faces challenges in filling all slots. Nevertheless, the volunteers' dedication ensures that the animals always receive the best care possible.

Webster the Mastiff’s Touching Journey

Since its start, Journey Home has positively impacted the lives of many animals in need. One particularly moving story is that of Webster, a Mastiff mix who came to the organization with a severe abdominal wound. The team quickly mobilized to secure the necessary funds and transportation for his surgery and recovery. Webster's journey from a rural pound to a loving foster home is a testament to the dedication and resourcefulness of Journey Home's volunteers.

After his surgery and recovery in a medical foster home, Webster blossomed into a happy, playful dog under the care of Journey Home’s placement program, A Place Called Home. He was eventually adopted by a loving family, becoming a symbol of hope and resilience.

Managing the Logistics

Rescuing animals from across the region, and sometimes beyond, is no small feat. Often, Journey Home is contacted at the last minute with little information about the animals in need. The organization works closely with local law enforcement, animal pounds, and other rescue groups to coordinate these rescues. "It's really tough sometimes," admits Hagert-Rethemeier. "Our rescue coordinators evaluate which animals we can secure appropriate fosters for and then arrange volunteer transportation."

The foster families open their hearts and homes to these animals, supplying them with all they need to recover and thrive. Their role in the rehabilitation process, helping animals overcome physical and emotional trauma, cannot be overstated. Although the logistics can be challenging, the outcome of the team’s effort is always worth it.

Community Involvement

From individuals to organizations, the involvement of the community in fostering has had a profound impact on the mission. Local businesses have supported Journey Home by hosting events that raise funds and awareness. "Many of our animals have been adopted by people who have come out to support us at community events," says Hagert-Rethemeier.

These events also provide opportunities for fosters to connect with each other and the public, fostering a sense of community and shared purpose.

The Crucial Role of Funding

The establishment of an endowment fund with the Community Foundation has been pivotal in Journey Home's growth and sustainability. Initiated with the support of generous donors in November of 2023, the fund is on the brink of reaching the necessary amount to begin distributions. "We are very fortunate to have supporters that helped start the endowment fund," says Hagert-Rethemeier. "The Community Foundation has been wonderful in including Journey Home in their nonprofit features and other communications, providing us with a platform to grow and sustain our efforts."

Looking Ahead

Journey Home Animal Rescue aims to continue supporting and caring for unwanted animals in Grand Forks and surrounding communities, providing an adoption option for animals in North Dakota pounds that do not adopt out. The organization also plans to expand access to veterinary care and educate the community on responsible pet ownership. "We want to continue growing our volunteer base so we can reach more and help more," Hagert-Rethemeier says.

One exciting initiative on the horizon is the expansion of their emergency rescue building, A Place Called Home, which has already provided a safe haven for over 225 animals, including Webster the Mastiff mix. 
​
The Road Home

Journey Home Animal Rescue embodies the spirit of community and compassion. Their tireless efforts, supported by volunteers, local businesses, and the Community Foundation, have saved countless lives and given many animals a second chance and the experience of unconditional love. As they continue to grow and evolve, their commitment to making a difference in the lives of animals and people remains unwavering. "Journey Home Animal Rescue is a small and mighty team," Hagert-Rethemeier says. With passion and expertise, they accomplish incredible feats. But they are always looking for others to join their life-saving mission and further their impact on a community of animals in need.

Aspiring volunteers can easily reach out through Journey Home's website, journeyhomeanimalrescue.org, where they can sign up for programs and offer their support. View Journey Home's 2023 report here.

Collaborating for Change

Art and art education are vital components of any community. They bring people together, fostering healthy bonds and reducing isolation. Engaging in art helps to reduce stress, create empathy, and promote critical thinking. Moreover, art is simply fun and can be a powerful tool for healing and unifying communities.

Collaboration is key to the success of Art Matters, as they rely heavily on partnerships with schools and other nonprofits. Many underserved children face challenges in accessing donated items, so Art Matters works with organizations that regularly interact with these children to bridge that gap. One of their key partners is the Community Violence Intervention Center (CVIC), a long-established local nonprofit. “When CVIC identifies children who are in need, the packs they distribute can be a key resource to keep kids engaged and help put them more at ease during difficult situations,” says Sapa.

Feedback from CVIC has been incredibly positive, emphasizing how the packs help children cope during times of instability and uncertainty. They provide a valuable outlet for mindfulness and engagement during CVIC’s meetings with families, which can be stressful for children.

Art Matters has also collaborated with Calvary Lutheran Church, where they provided art supplies to every student at Lewis and Clark School in  honor of Pastor Kirk Messick. This project  was a touching tribute and a huge success, with 195 packs distributed.

Great Effort for Greater Outcomes

Maintaining the operation and distribution of art packs, especially during challenging times, has not been without its hurdles. The entire Art Matters team is made up of volunteers, and Sapa herself works a full-time job alongside it.

“This often requires working at night and on weekends,” she explains, and during the summer, her living room turns into something of a warehouse for supplies. Sapa is grateful for the support of her spouse and motivated by the positive experiences these art packs bring to children.
At Art Matters, that motivation never falters. “We may be an organization of unpaid volunteers, but we have deep roots in our community and a strong determination. We are committed to seeking donations, broadcasting our mission, keeping up relationships, and forming new ones, no matter how long it takes,” Sapa explains.

​The news about large gifts keeps coming! And “big bet” philanthropy in general has been in the news recently, reportedly because donors’ approach to giving at scale is changing thanks to a greater focus on relying on the experts in organizations to deploy resources for maximum impact and trusting them to do so. It’s also encouraging that donors are trending toward giving gifts in dollar amounts that are appropriate to tackle the scale of the challenge to be addressed rather than basing donations solely on the organization's current capacity and budget. 

The team at the Community Foundation can help you maximize your ability to receive large gifts to your reserve fund or endowment fund. We do this by offering structure and services for you to house your fund with us. This, in turn, allows our team to help you with crucial fundamentals for planned giving tools to attract and accept large gifts, including:

• Support to accept complex gifts of alternative assets, such as real estate, closely-held stock, and even large blocks of publicly-traded stock
• Support to establish and administer charitable planning vehicles to benefit your organization, such as charitable remainder trusts and designated funds
• Support to help a donor establish a bequest to your organization in a will, trust, or–and especially tax-savvy for the donor–via beneficiary designation on an IRA or other qualified retirement plan

Indeed, planned giving, especially via bequests, continues to be an important source of funds for nonprofit organizations across the country. Some researchers have estimated that the historical average size of a charitable bequest falls somewhere between $37,000 and $78,360. That’s hundreds of times larger than the average one-time donation a living donor typically makes, which historically has been identified as hovering a bit over $100. 

Please reach out to the team at the Community Foundation to learn how we can help you grow your organization’s endowment or reserve fund. If your organization has not yet established its fund with the Community Foundation, let’s talk! Now is the time to make sure your planned giving and endowment infrastructure is firmly in place so you can lean into the “big bet” philanthropy trend. 
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

A donor-advised fund is one of many types of funds that an individual, family, or business can establish with the Community Foundation. You’re likely more aware of donor-advised funds than other types of funds because they are frequently covered in financial media and also because your organization might have received grants from donor-advised funds. 
 
The team at the Community Foundation is happy to talk anytime to help demystify these popular vehicles. At the very least, however, you’ll want to check out the recently-released DAF Fundraising Report that sheds new light on the overall role of donor-advised funds in philanthropy and the significant value donor-advised funds provide to charities. 
 
For example, the report revealed that when a donor starts giving from a donor-advised fund, their annual giving increases by 96%! Donor-advised funds are also helping keep philanthropy strong. According to the report, the number of donors using donor-advised funds has grown by 79% in an environment where the number of other types of donors has declined by 6%. 
 
It’s absolutely worth your time to learn the basics of how a donor-advised fund works. You and your team also should consider developing strategies to identify and cultivate relationships with your donors who are using their donor-advised funds to support your organization. Dollars in donor-advised funds are already set aside for charitable giving, and it’s very convenient for donors to use their funds to support favorite organizations–like yours.
 
It’s also important to know that the team at the Community Foundation encourages donors to give directly to their favorite charities when that’s the best strategy to achieve a donor’s estate planning, tax, and charitable goals. Many times, though, both the donor and the charity benefit from the donor using a donor-advised or other type of fund at the Community Foundation. Examples include cases where the donor wants to give a complex asset, such as real estate or closely-held stock, or needs to plan out several years of giving to address fluctuating income levels and tax liability. 
 
We are always happy to review how the Community Foundation works with donors through donor-advised funds and other vehicles to support your organization and others in the community. We look forward to hearing from you! 
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

​The team at the Community Foundation frequently hears from nonprofit professionals about how difficult it is to communicate to donors the value and importance of unrestricted gifts. This is especially the case when you and your colleagues are striving to attract dollars to boost your operating reserve or endowment fund.

Here are five cut-and-paste talking points you can use in your donor communications to help break through the myths that often surround unrestricted giving. 

Myth: A charity can use unrestricted dollars for anything it wants. 

Reality: When a donor makes an unrestricted gift to a charity, it means that the charity has the flexibility to use the funds where they are needed most within the charity’s overall mission. A charity has a legal and ethical responsibility to use all donations–whether unrestricted or restricted–to carry out its charitable purpose. 

Myth: Unrestricted gifts have to be big to make a difference.

Reality: Any size unrestricted donation, whether to a charity’s current programs and operations or to its endowment fund, is meaningful. To fund their missions, charities rely on all levels of donations from a wide variety of donors. Even very small donations help charities build relationships with new donors and expand the circle of awareness. 

Myth: Donations that are restricted to supporting actual programs make the biggest difference.

Reality: A charity is like any other organization, whether for-profit or nonprofit, in that there are critically important expenses required to do its work. Rent, utilities, technology, and insurance aren’t technically “program” expenses, but without these expenses, a charity cannot function. Unrestricted gifts often help support these essential line items in a charity’s budget. 

Myth: It’s hard to see the impact of unrestricted gifts.

Reality: Unrestricted gifts are vital for a charity’s overall sustainability and allow it to carry on year after year. Indeed, a donor who gives an unrestricted gift can look at the entirety of the organization’s impact and know that the gift helped make it all possible. 

Myth: An unrestricted gift is not a “strategic” philanthropic investment.

Reality: Unrestricted gifts are arguably the most strategic type of giving because they demonstrate trust in the charity’s leadership to make the best decisions in carrying out the charity’s mission. An unrestricted gift also sends a signal to other donors that the organization’s leadership and staff are strong, which in turn attracts more support. 

Please reach out to the Community Foundation for more ideas about how you can communicate the value of unrestricted and endowment giving to your donors. We are here to help! 
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

​The word “endowment” can be intimidating, even for the most seasoned fundraising and planned giving professionals–and certainly for donors! But it doesn’t have to be that way. “Endowment” is such an important concept to secure your organization’s future, and it’s worth striving to simplify the basic points for your team and your donors.  
 
Here are answers to five frequently-asked questions about your endowment fund at the Community Foundation that may help you communicate with your staff, board, and donors. Please copy, paste, edit, and deploy as you wish! 
 
What does “endowment” mean?
“Endowment” refers to a designated pool of assets that are invested (in our organization’s case, by the Community Foundation) and tracked separately such that a modest portion (usually based on a percentage) of the assets are distributed each year to support our organization’s mission, and the rest of the assets remain invested to grow in perpetuity. 
 
Why is our endowment fund so important to the future of our organization?
The assets set aside in our endowment fund produce an income stream that helps support our mission now and in the decades ahead, allowing us to deliver on our mission consistently over time, especially as needs shift and the fundraising environment ebbs and flows. Plus, the growth of the endowment itself can provide increasing levels of support each year. 
 
How can donors stay involved even after they make an endowment gift?
Our team is happy to keep donors informed about the positive change in the community that is occurring thanks to distributions from the endowment fund. We’re happy to continue to keep a donor’s children and grandchildren informed, too, beyond a donor’s lifetime. In this way, a donor’s legacy continues through the generations. 
  
Who decides how the endowment distributions get used each year?
Our organization’s board of directors reviews endowment income each year as part of a careful budget process. It’s very clear that certain dollars are flowing into the budget from endowment income. Our independent board of directors, together with staff, develops and oversees a budget to meet our organization’s mission for the coming year.
 
How can a donor make an endowment gift?
A donor certainly may transfer cash to the endowment fund. Even better for tax purposes, a donor can transfer appreciated stock or real estate. A donor can also work with estate planning and financial advisors to structure a bequest to the endowment fund. Our team works with the professionals at the Community Foundation to help each donor design a gift to achieve both the donor’s tax goals and charitable giving goals. For instance, many advisors highly recommend a bequest through an IRA beneficiary designation because of the multiple tax benefits. Related, if a donor is over 70 ½, making a “Qualified Charitable Distribution” from an IRA directly to our organization’s endowment fund is a very effective charitable planning tool to reduce income tax and, if applicable, also satisfy Required Minimum Distributions.
 
The Community Foundation team looks forward to working with you and your donors to establish meaningful endowment gifts that support your organization’s mission for generations to come. Thank you for the opportunity to work together!
 
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. 

​“You can’t make old friends” isn’t just the title of an album; it’s an important reminder that long-term relationships are the key to successful endowment building. That’s common sense, of course, but sometimes it’s hard to put this principle into action. You’re ready now to grow your endowment fund at the Community Foundation, and you wish your donors shared your sense of urgency! 
 
There are no silver bullets or magic tricks or secret sauces to make donor relationships grow faster, but it might help to understand how your donors’ emotions factor into decision-making about when–and to what extent–they will make a financial commitment to your endowment. 
 
Along those lines, the team at the Community Foundation really enjoyed a recent article in the Stanford Social Innovation Review offering suggestions for ways to approach philanthropy so that it is “relational,” including thinking in terms of "we" instead of "us” or “them" and moving away from hierarchical models achieving impact. 
 
As you update your endowment-building plans, consider three ideas inspired by principles of relational philanthropy. 
 
Focus on donor loyalty and trust
Keep an eye toward creating long-term, mutually beneficial relationships with donors. Trust fosters donor loyalty, encouraging recurring and more substantial contributions over time, which is crucial to ultimately securing an endowment gift. To achieve this, you need to understand what benefits the donor is seeking by supporting your organization. Is it recognition? The knowledge that they’re part of something bigger than themselves? Confidence that a problem they’ve personally wrestled with will be solved for others? The donor’s perspective matters.
 
Inspire donor advocacy
It’s one thing for donors to feel personally connected to your organization. It’s an entirely bigger thing for them to become advocates. When a donor is so dedicated to your mission that they actively encourage their friends and family to also support your organization, you know you’ve got a friend for life. Asking this type of donor for a commitment to your endowment is likely to achieve a high rate of success. Pay close attention to which donors are regularly referring new donors to your organization, whether by offering up prospect names directly or inviting prospects to join the donor’s table at your organization’s annual event. 
 
Know your audience
Large-scale communications platforms such as email campaigns, social media, and your website are important tools in all fundraising activities, including securing endowment gifts. An endowment gift is a big ask, though, so make sure to layer in highly personal outreach to your donors, in addition to general messaging. One-by-one communication across channels allows you to demonstrate your organization’s understanding of donors' individual preferences for their involvement.
 
As always, please reach out to the Community Foundation anytime you have questions about best practices for growing your endowment fund. If your organization has not yet established its endowment fund at the Community Foundation and you’d like to learn more, we’d welcome the opportunity to talk with your team and board of directors. We look forward to continuing to work side-by-side to improve the quality of life in our community through the power of philanthropy. 
​
This article is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice.