What Is An Endowment?

How An Endowment Can Help Your Organization

1.) PREDICTABILITY
• Endowments provide stable income to minimize the impacts of economic and demographic uncertainties.
• Endowments diversify the organization’s income.
• Ensures the longevity of the mission for generations to come.

2.) PROTECTION FROM LIABILITY
• Programs and operations that serve vulnerable populations are at higher risk of litigation, making asset protection a priority.
• Protects from breach of contract, injury, defamation or other claims against your organization.

3.) ENHANCED GIVING OPTIONS
• Provides additional opportunities for larger and more frequent gifts.
• Provides a destination for end-of-life gifts.

4.) ATTRACT GREATER FUNDING
•A strong endowment signals credibility, strength, and longevity.
•Attract donors to leave planned gifts or larger immediate gifts.

Why is An Endowment Important?

We are called to be good stewards of our property, buildings, programs, and services. This includes securing the necessary funds to cover today’s expenses, as well as building capacity for future growth. Endowments are critical to the long-term survival of parishes, schools, and charitable organizations because they provide a permanent and stable source of income over time.

To learn more about endowments and how the Catholic Community Foundation can help you achieve your goals, call 480.651.8800.

The table above represents the key value and purpose of an endowment. As time goes on, endowments aim to close the gap between expenses and the amount of donations needed to break even on an annual basis. As the endowment balance grows, fewer donations are needed to sustain your operations. The sustainability and predictability of the endowment income is high, while the amount of donations each year is unpredictable and subject to economic and social factors outside of the control of the nonprofit. This inconsistency can lead to shortfalls and potential disruption to the mission.