building endowments building community )

1885 South Arlington Avenue, Suite 103, Reno, NV 89509

775-333-5499 Fax 775-333-5487 nevadafund.org [email protected] fffffffff

Building Endowments Building Community

When your nonprofit organization’s board considers building an endowment, it is time to speak with the Community Foundation of Western Nevada. We can help you reach your goals.

What is an endowment fund?A charitable organization endowment fund is established by a public charity for its own benefit. It is a permanent fund whose assets are invested to generate income. The goal of an endowment is to preserve the principal and distribute a portion of the investment earnings annually to the nonprofit organization.

An endowment fund is not a special project fund, a reserve fund or a capital fund, all of which usually allow spending of principal. An endowment is an income stream, growing as the principal grows.

Your endowment is one of the important sources of income in your organization’sfunding mix. Your endowment fund can act as an income stabilizer. The permanent pool of assets is invested for long-term growth. Your organization receives its annual grant (usually 4 or 5% of the fund balance). Your board sets the size of the annual grant when creating the fund agreement. The grants grow over time as the income generated from your fund grows.

When an economic drop hits and your donors give less, your endowment grant can smooth the waters in your cash flow and give donors a sense of security. They know your organization is here for the long haul and will feel confident that their gifts to your operating expenses and programs will be put to good works.

15 years…Connecting people who care with causes that matter

Scott Faulkner, rco Director ©2010, Stuart Murtland Photography

“The endowment check we received this year was a huge help with our operation expenses. It was one of the few pleasant surprises in a budget year. We didn’t expect the endowment investment to have done as well as it did.”

Why Build your Endowment at the Community Foundation of Western Nevada?



n Complicated gifts, gifts of securities, and real property can be accepted into your endowment fund. We make it easy for your donors to give, and simple for you to raise endowment funds.

n All gifts are receipted by the Foundation, a public charity. The donor may take a tax deduction.

n Your fund reaps the advantages of investing in a larger pool of assets which can lead to greater growth, greater income, and lower investment fees.

n You receive copies of all gift acknowledgement letters sent to donors to your fund.

n The Foundation handles investment management and oversight, all accounting and financial reporting and the annual audit.

n All gifts to the fund are designated for your organization’s use only. While co-mingled for investment, your fund will not be used for other purposes.

n The Foundation sends your organization a quarterly statement containing information on the fund’s activities, gifts, investment returns, and your annual grant. Fund representatives are welcome to call any time.

n Endowment funds can be established with a $10,000 minimum balance.

n The fee for an endowment fund is 1½% of the average daily fund balance charged quarterly for funds under $1million. Fees for larger funds are reduced on a sliding scale.

n For funds of $1 million or more, the Foundation will consider an investment relationship with a particular firm and advisor.

n The Finance and Investment committees at the Foundation will ensure that benchmarks are established and that the performance of all investment pools achieves an acceptable level as compared to the benchmarks. Investment pools not performing to an acceptable level may be restructured and/or moved to a better performing manager.

n Your fund will be listed in our annual report and on our website. Periodically, interesting donor stories or grant uses will be featured in our publications giving your organization’s endowment more publicity.

n Representatives from your organization staff and board are invited to Foundation events and meetings.

n Legacy donors to your endowment fund through the Community Foundation are recognized in our publications and will be invited to a special, private Legacy Society party for Foundation donors.

For more answers about building your endowmentcall Tracy Turner, Program Officer 775-333-5499



Endowments are Built on Bequests and Board Support.

Tips for Building your Endowment*You already know who will be your endowment supporters. Look through your donor records and find out who gives every year. These are the people most likely to give you a bequest. But… You do need to ASK.

Ground Zero – Board Commitment

Rationale: If your Board won’t support your endowment, why should anyone else? Start your endowment with gifts and future bequests from your Board. Get your Board “On Board”. Your Board and staff are invited to attend training workshops on building endowments and networking opportunities for sharing ideas.

Step One: Start a Legacy Society – thank your endowment donors for the planned bequests now and make them feel special.

Step Two: Write a letter to donors who have given for five or more years. Donors who give more than the average annual gift are the best target for bequests. The letter says in essence – Thank you. You can support us in many ways. If the time is right, please consider a gift to our endowment in your will or trust. (Include contact information and sample language.) Repeat annually.

Step Three: Inform, Remind, Repeat. – Make an Endowment Bequest Marketing calendar.

Be joyful about bequests. They are life driven. A legacy is the opportunity of a lifetime.A.

Talk about the importance of endowment bequests to your organization.B.

Talk about how big the gift will become over time when endowed. One great example is an endowment at the C. Community Foundation that was established in 2003 with a gift of $1 million. After granting out $617,250 over 10 years how much do you think is left? The donors were thrilled to learn that their original gift has actually grown to $1.1 million. The endowment has generated so much more money to use for good.

Mention ease: All it takes is a quick phone call to your attorney to add a charitable gift to your will or trust.D.

Mention the importance of bequests to your endowment in E. every publication.

Talk about the annual endowment grant in your newsletter. Let donors, future donors and prospective F. donors know what you did with your annual grant.

“Plant trees under whose shade you do not expect to sit.” Your organization’s endowment can connect you to donors’ families across generations.

*Tom Ahern Communications Inc.



You have an Expert Planned Giving Resource in the Community Foundation of Western Nevada.

The initials after Community Foundation President and CEO Chris Askin’s name stand for Certified Specialist in Planned Giving, and Certified Fund Raising Executive. When you build an endowment with the Community Foundation you have expertise of our staff and Board working for you.

Planned gifts usually are simple bequests. Sometimes they can also be complicated and difficult tax saving gift for a nonprofit to work with.

The Community Foundation will be a great help to your Board by partnering with your donors and their professional advisors to create a gift that works. We provide technical expertise in gift planning, including planned giving illustrations to make even the most sophisticated gift arrangement convenient and understandable for donors, their professional advisors and you.

Your donors will appreciate that we help them make their gifts in the most tax-efficient manner. The Community Foundation of Western Nevada accepts non-cash gifts to your endowment fund such as publicly traded and closely held securities, real estate, life insurance and other types of gifts.

We will hold charitable gift annuities for your endowment fund. Our charitable gift annuity program provides all the illustrations, agreements, receipting, compliance, investment services, risk management, income payments and income tax reporting.

Professional Advisors from all over northern Nevada look to the Community Foundation as an information resource on gift planning. We have worked with the most respected attorneys, accountants and financial planners to support the good works done by nonprofits in Nevada. Please refer to our Professional Advisor Council found in our annual report and website to see our partners in supporting charities through planned charitable giving.

Chris Askin, CSPG, CFRE

The Mansfield Endowment

for the

Nevada Humane Society

supports care of our

region’s cats – forever.

Carl and Virginia Mansfield did not have children and gave the majority of their estate to the Community Foundation. We are honored to uphold their trust and manage the $5.6 million Mansfield Endowment for the Benefit of the Nevada Humane Society. We will make sure the endowment is managed for the purpose they exactly intend, forever.

building endowments building community )

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