You might have heard about agency endowments (AKA nonprofit endowments), but are not clear on what they do or how they benefit your favorite nonprofit. We have put together some of our most Frequently Asked Questions so you can learn how agency endowments are helping your favorite nonprofit to be sustainable for the future.
What is an Agency Endowment?
An Agency Endowment is a special fund set up for a specific nonprofit at a community foundation. An endowment is designed for permanency and long-term sustainability. This is typically achieved by preserving both the original contribution(s) and any subsequent contributions that are then invested for long-term growth. An endowment can grow through ongoing gifts and positive investment returns. A percentage of the earnings can be used each year to advance the organization’s charitable mission.
What are the benefits to the organization for having an agency endowment?
When a nonprofit has an endowment they are ensuring their future. There are several benefits for nonprofits who have an endowment with the Community Foundation of Greater Fort Wayne. We offer a 20% match on all individual gifts into endowments that follow our spending policy, with a maximum match of $10,000 per year.
We also offer additional opportunities for individuals to maximize gifts into their favorite nonprofit fund, including the #GivingTuesdayFW Challenge. The nonprofits who raise the most money for their endowment during our #GivingTuesdayFW time frame, receive an additional gift from CFGFW on #GivingTuesday!
Nonprofits who have an endowment with the Community Foundation of Greater Fort Wayne, also have the added benefit of knowing that their fund will be here to support them forever.
Why would I give to an Agency Endowment instead of directly to the organization?
Let’s be clear, we are not saying to stop giving directly to the organization you love, but rather to think about what you want your gift to do.
Are you trying to help an immediate need? Giving directly to the organization would be the best option.
Are you trying to help the organization in general or with operating costs? Consider giving to their agency endowment and receiving a match on your gift from CFGFW. This will maximize the impact of your gift to the nonprofit and continue to give back to the nonprofit every year.
No matter what you choose, giving directly, or by giving to their endowment, you will be making an impact and supporting the nonprofit you care about.
What if the organization doesn’t have an agency endowment to give to?
If a nonprofit doesn’t have an agency endowment with the Community Foundation, you can start one! To start an agency endowment for your favorite nonprofit organization, contact Alison Gerardot at 260-426-4083.