1. Endowment 101Building your non-profits endowment from the start-upphase to mega-endowmentBy Janet Doolin. J.D.

2. Phase 1Plato-An Endowment for His School Initiated the first endowment Academy of learning started in 387 B.C. Instructed his nephew to use income from the rental for students and faculty to further the operations of the academy 3. Phase 1England and the U.S. Endowments were utilized in the Middle Ages People with wealth and power donated land to religious groups 1500s and 1600s trust law evolved in England In the U.S. mega-endowments were built by donors through bequest 4. Phase 1Purposes and Uses of Endowment Long-term financial health New revenue stream Ongoing scholarships Current Services Protection against inflation/market fluctuations Flexibility New programs and services Acquiring/improving facilities Protecting investment Prestige and permanence 5. Phase 1Benefits of Endowments Lasting impact/Lasting tribute Support current staff and board leadership Express gratitude Perpetuity 6. Phase 1Your Endowment Plan Builds Evidence Organizations should show donors or prospective donors:1. Evidence of Good Management2. Evidence of Solid Planning Builds Donor confidence 7. Phase 1Steps to Take Have Staff/Board Members take Endowment 101 Audit Create Endowment Task Force Decide how soon the endowment is needed Decide if an endowment consultant will be hired Draft a endowment blueprint Build the Case for Endowment 8. Phase 1The Endowment Team-Qualities of Endowment TaskForce Member Individual actively involved in current activities Experience as a board member or comm. member Supportive of concept of endowment Knowledge of financial world Able to communicate and explain concepts Desire to develop, cultivate, and solicit donors when appropriate 9. Phase 1The Endowment Case Mission/vision statement Goals and plans Objectives and action plans Current and proposed programs and services Financial statements and summaries Governance documents Bios of Staff and Board Members Evaluations of programs and services History of leadership and impact 10. Phase 1The Endowment 101 Audit Conduct an audit when the organization is starting or revitalizing an endowment Staff and Board Members both take the audit Many audit/assessment items are critical to your organizations success 11. Phase 1The Four Pillars or Endowment Four Strategic Planning Elements for an EndowmentI.The Case for EndowmentII. The Issue of Board SupportIII. Communication IssuesIV. Stewardship Issues 12. Phase 1Do We Need and Endowment Consultant? Assist with the design and early implementation stage Gets your organization on the right track from the start Accelerates your results 13. Phase 2Why Should Organizations Make Their Own Policies? Helps the Board to makes good decisions on complex issues Nonprofits cannot delegate authority without the proper policies in place Helps with accountability 14. Phase 2Endowment Investment Policy Key to achieving solid investment returns Establishes integrity Should be in writing and approved by board 15. Phase 2Spending Policy Spending Policy should match investment policy Should be in writing and approved by board Fee policies should be set Board decides in advance how much to charge foradministration expenses Should be revisited each year 16. Phase 2Gift Acceptance Policy Policies for cash gifts, in-kind gifts, planned gifts and endowment gifts Gifts of assets such as stock, business interests and real estate are complex 17. Phase 2Three Levels of Endowment Start-up Endowment-ranges from zero to $10 million Small to mid-sized Endowment-ranges from $10 million to $100 million Mega-Endowment-$100 million or more 18. Phase 2Endowment Management Operating Reserves Capital Reserves Board-Designated Endowment Funds Donor- Restricted Funds-donor imposes restriction 19. Phase 2Endowment Gift Documentation Set policies on what type of written documentation will be needed Use straight forward language Make sure the charity includes all necessary information in the endowment agreement so there is a complete meeting of the minds 20. Phase 2Four Major Considerations in Accepting 1. Is the gift readily negotiable or convertible into cash? 2. Will the gift create any legal liability for yourorganization? 3. Will the gift be cost effective? 4. Are there any unreasonable conditions, restrictionsor prearrangements on the gift? 21. Marketing the Endowment Developing a Strategic Communication Plan Three-Pronged Approach: Broad Marketing Plan Targeted Marketing Plan One-on-One Marketing Plan 22. Profile of an Endowment Donor Mature Individuals Limited Family Obligations Financial Security Past Association with Your Organization 23. Four Types of Donor Visits1. Initial Cultivation Visit2. Deeper Cultivation Visit3. Solicitation Visit4. Stewardship Visit 24. Ten Tips for Making the Appt.1. Send a Warm-Up Letter2. Be upbeat and positive3. Be ready to share dates and times available4. Identify yourself clearly5. State the purpose of your call 25. Ten Tips for Making the Appt.6. Meet any objections7. We value your ideas and opinions8. Brief meeting9. Meet in convenient location10. Reconfirm the day before meeting 26. Initial Cultivation Visit Goal: To get invited back for a second visit Develop the donors personal interests Develop a strategy for the next move ahead 27. Deeper Cultivation Visit Increase the donors motivation Think about how to engage the donor in activities Ask for more feedback and comments Float a Proposal 28. Sealing the Endowment Agmt. Why a written agreement is essential Items to include in every endowment agreement Acknowledging the Donor Recognizing the Donor 29. 4 Types of Donor Recognition1. Some Donors Crave Recognition2. Some Donors Will Accept Recognition3. Minimum Recognition4. Total Anonymity 30. Develop a Recognition Society May help to cement a gift commitment Positive, low-key contact Exclusive Membership Inclusive Membership 31. Recognition Policies Get the donors express permission Keep member qualification and benefits consistent Offer multiple opportunities to join Decide on an appropriate name for the Society Provide regular updates on endowment progress 32. 3 Endowment Blueprints1. The Slow and Steady Blueprint2. The Focused Endowment Campaign3. The Comprehensive Campaign 33. Tips for Successful Campaign Strong Case for Endowment Credible Plan Realistic Goals and Timetable Clear Campaign Policies Early Commitment by the Board Previous Success with Major Gift Campaign Many Qualified Prospects 34. More Tips Campaign Success Solicit Early Gifts Solicit Those Closest to Organization First Develop Effective Volunteer Structure Develop Strong Staff Support Have Written Proposals for Prospects/Donors Have Written Endowment Agreement for Every Gift Be Prepared to Work with Donors Advisors 35. For More Information: Contact Doolin Consulting for a Complimentary Consultation Visit our Website: janetdoolin.com Phone Consultations available: 919.533.0105 Thank You!