Endowments and the Intersection of Trust-Based Philanthropy: Investment Options for Nonprofits with Long-Term Goals

breiby@growyourgiving.orgGreater Horizons News

Fundraising is not easy. To our friends in development roles at nonprofits across the country, we see you and applaud the critical work you do to ensure charities have the resources to help make our world a better place.

We understand that your priority is likely procuring donations for the current fiscal year. As you consider more long-term fundraising, you may ask yourself if you have enough bandwidth to build an endowment or legacy fund.

This quote from the Bridgespan Group summed up why it’s so important to ask for endowment funds, “They (endowments) are the purest example of trust-based philanthropy we can think of, representing a transfer of power from donors to doers (nonprofits).” A long-term investment can offer nonprofits security and freedom at the same time. With a solid investment policy, insightful volunteers to help set objectives, and an administrator that can provide low-cost full-market exposure to fulfill long-term goals, your nonprofit can offer donors a way to support your organization now and into the future.

Greater Horizons offers a third-party low-cost investment choice to help sustain nonprofits within our local community and beyond. These agency funds (or endowments as others call them) can be unrestricted and serve as board-designated funds or quasi-endowments, allowing leadership to direct funds where the organization most needs them.

Investment Mixes Tailored to Agency Funds

Greater Horizons works with more than 200 nonprofits that take advantage of agency funds to increase their budgets through efficient and accessible investments. With so many charities accessing Greater Horizons’ investment options, Greater Horizons’ Investment Committee created three investment mixes designed specifically for agency funds, tailored to organizations with long-term investment goals.

Current Greater Horizons agency funds can complete our agency fund investment recommendation form and select a new agency fund investment mix at any time. Investments are adjusted monthly, and changes are applied on the last day of each month. Changes submitted during or after the last full week of each month will be effective on the last day of the following month.

If you have questions about agency funds or the agency fund investment options, contact Senior Philanthropic Advisor Nicole Stuke.

Additional Resources about Endowments

Authored by: Nicole Stuke, Senior Philanthropic Advisor