Endowment Building Readiness Assessment
McKinley Carter Philanthropic Advisors provides an endowment evaluation service designed to determine the organization's ability to increase endowment funds through performance monitoring with policies and guidelines, fund raising, and planned giving programs.
For endowment growth to take place, the organization should meet a number of criteria. The following is a check list to evaluate the organization's ability to manage and grow its endowment.
- Does the organization's board understand the importance of an endowment and are they committed to supporting the endowment financially? Is the board willing to contribute to an endowment campaign or allocate operating resources to support endowment related expenses?
- Has the organization had success in raising endowment funds? Has the organization shown proper stewardship through the completion of projects funded by endowment monies?
- Does the organization have a significant number of donors contributing to an annual fund? Does the organization solicit major donors? Does the organization have 5 to 10 donors capable of giving 80% to 90% of an endowment campaign effort?
- Does the organization have the capacity to meet its operating needs? Does the organization have a long history of financial stability and conservative fiscal management?
- Can the organization communicate a long-range plan or vision? Can the organization justify an endowment and show how its generated income will enable the organization to better meet its mission?
- Has the organization crafted a long-range plan for endowment growth?
- Has the organization developed endowment policies and controls to protect principal from invasion? Such plans to include spending rates, savings rates and gifting rates.
- Does the organization have a history that shows it will be around in 100 years?
- Does the organization have an ongoing effective planned giving program?
- Does the organization, including board and staff, understand that an endowment does not replace annual fundraising?
Endowment funds provide long-term financial stability for any organization. In uncertain economic times it is imperative to manage endowments effectively and to evaluate the ability of the organization to grow their funds in an efficient manner.
If you answered "no" to any of the questions above, McKinley Carter Philanthropic Advisors can help you develop and sustain your organization's endowment and ensure financial independence.
Evaluate your organization's "readiness" by taking this Readiness Assessment to your next board meeting. Click here to download.
Contact us to learn more on how we may be of help.