What if you were the one in your organization who took a stand to leave a legacy of sustainable funding, starting right now?

You could be the one to say, "This organization will have an endowment fund large enough to fund our annual operating shortfall from interest earnings alone." What if your vision was the source of this breakthrough?

Why not let this year be the turning point for your organization? Let it be the year you conquer your "endowment avoidance" and finally get to work building that endowment fund you've always known you should be building.

Most nonprofits today are still so attached to the old reality of suffering and hand-to-mouth existence they haven't noticed that, in the new reality, well-funded endowments are possible for all organizations.

In fact, if your organization has been around for ten years or more with a solid track record, you should be actively engaged in funding your endowment right now. If your program is younger than that, all the better. Every bit of your current annual fundraising can be done with an eye toward building that endowment.

Let's clarify our terms. Simply put, an endowment fund is a sum of money that your organization doesn't spend. You invest it in an investment fund or pool it with the funds of other nonprofit organizations in a community fund. You never touch the principal; you only spend the interest.

There are many ways to set up endowment funds. Some have strict rules as to what percent of the interest must be spent each year, whether you must reinvest a portion of the interest, what percentage of your budget may be funded by endowment interest, etc.

Your board will want to consult an attorney skilled in this field before you begin. Also, a meeting with your local community foundation can greatly simplify the money management process.

Quantifying Your Needs
Take the time to quantify what size endowment corpus you would need. Look at how much your internal fund development efforts are budgeted to net each year, and assume that you need every penny of that to fill the operating gap. Let's say the number is $100,000. How large an endowment fund would have to be accumulated and invested at a conservative interest rate (say 5%) to throw off $100,000 per year in interest? That would take a $2 million endowment.

Granted, $2 million may seem like a lot, if viewed from the year-to-year, hand-to-mouth perspective. But in the eyes of a few of your top donors, it isn't much at all. Many of them would be happy to seed your endowment fund in addition to giving annually.

With a focused plan, over time, your organization could raise that endowment. Then your sole fundraising focus would be to build your base of new long-term supporters who could continue to grow your endowment and allow you to expand your work exponentially.

Consider Your Existing Donors
If you choose to launch an endowment fund with the intention of having it fully funded in a finite number of years, you will want to start paying attention to the loyal supporters who are right under your nose. Look for the quiet, faithful donors in your midst who truly love your organization and believe in your work. Next, notice the ones whose names are on your repeat donor lists, yet no one really knows them. You will need to get serious about getting to know them. In fact, your main fundraising focus may shift to individuals who could become endowment donors.

Convince Yourself First
While an endowment fund may be starting to sound more plausible, there is one last hurdle to overcome before you can fully commit to leading the charge: you will have to convince yourself of the difference a fully funded endowment would make to your organization.

Many professionals in the nonprofit sector feel they cannot indulge themselves in imagining an endowment. While they could expound for hours on all the wonderful things their organization could accomplish with that money, they are also like superstitious little kids who don't want to get their hopes up about actually having it.

Your loyal donors, on the other hand, may have no problem imagining a cure or an end to that social problem your organization fights to solve. They may be more able to foresee the fulfillment of your mission than you are. Stand back a moment and consider whether you are so close to the issue that you are afraid to dream about the difference an endowment could make. You need to allow yourself to have that vision in order to begin making endowment a reality.

Take the Plunge
Today could be the perfect day to commit to starting your endowment. What else are you waiting for? The donors are out there, more prepared than ever to be a part of fulfilling your vision. Without you leading the way, it will never happen.

You will be leaving a lasting legacy for your organization—a well-funded endowment.