Recently, we were asked to share a presentation on endowment for NAYDO – the North American YMCA Development Organization. We published this blog on their site as a companion to that presentation, and are sharing it here with our readers. Even if you’re not a YMCA, we think you might benefit from dispelling a few of these myths in your nonprofit, school or church.
Working with Ys and other nonprofits across the US and Canada, we often marvel at the different ways organizations have engaged in endowment work. Some small Ys possess huge endowment funds with a vibrant Heritage Club, while many large, well-resourced associations somehow never seem to get around to endowment.
Are any of these myths holding you back?
MYTH: I DON’T KNOW THE DIFFERENCE BETWEEN ANNUITIES AND REMAINDER TRUSTS SO I CAN’T EFFECTIVELY TALK ABOUT ENDOWMENT.
You don’t have to be an expert. In fact, it would be inappropriate for you to suggest planned giving vehicles to a prospect. That is the job of their estate attorney or accountant. Your job is simply to listen to the prospect’s Y story, share your long-term vision and ask that the prospect consider the Y in their estate plans.
MYTH: I DON’T WANT TO DETRACT FROM OUR ANNUAL/CAPITAL CAMPAIGN.
Donors who have supported you in past campaigns are your best prospects for endowment. While sharing the case for your annual or capital campaign, simply remind donors that the Y is a great place to leave a legacy. Offering the option to have a larger endowment conversation won’t detract from the gift you were going to receive.
MYTH: TALKING ABOUT WILLS AND BEQUESTS IS MORBID.
You may be uncomfortable talking about estate plans. That doesn’t matter. Your job is to talk about vision and listen to the donor’s Y story. Your conversations are about life, not death. And as you talk about a future that neither you nor the prospect will see, you are still focused on the kids and families whose lives will be immeasurably enriched by the work of
the Y.
MYTH: WE’RE DOING FINE WITHOUT AN ENDOWMENT FUND.
Perhaps you are. But is “fine” the standard by which you run your Y?
Don’t you see the power in helping future generations of Y volunteer and staff leaders by building a strong endowment that will be a source of income and stability for generations to come?
Remember the advice of this ancient Greek proverb: A civilization flourishes when people plant trees under which they will never sit.
Are you ready to plant some trees?
