Five-Point Formula: Board Members and Endowment Fundraising

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.