Endowments Can Ignite Hyper-Philanthropy

As you may know, we at THG define Hyper-Philanthropy™️ as “the acceleration of giving through joy.” Our trademarked methodology aligns the four pillars of Strategic Vision; Culture; Behavioral Economics; and, Communication. When these respectively and collectively support the development of an endowment, there is a special ignition of philanthropic spirit.

 

Unlike a capital campaign, endowments are created to fund a designated purpose in perpetuity. They are the ultimate form of legacy giving.

 

The following should be considered when exploring endowment fundraising:

 

• Your Strategic Vision should encompass the long-haul view of how the endowment will continue to provide funding through the life of the organization. This should be placed up against the backdrop of continued growth and sustainability and be supported by a clearly defined purpose statement (the outcome of thoughtful strategic planning) and investment policy. The purpose may be organically determined through the establishment of long-term goals (examples include a General Scholarship Fund which will support continued enrollment growth or a Faculty Chair to fund premier talent); or, directly designated by the donor (a named exhibit space to support African American Art at a museum; a lecture series for a public library to conduct an annual symposium for climate change).

 

• Your Culture will determine the long-term life and care of the fund. Elements to consider include whether you have established policies and procedures regarding the types of gifts you will accept for endowment fundraising; whether there are investment policies for the continued investment of the fund; whether the annual draw from the fund will sustain its designation; and, the life cycle of your donor pool.

 

• Donor Experience. Truly understanding the shared value between your organization and its donors will assist in predicting the Behavioral Economics which will drive the philanthropic response to endowment fundraising. This shared value should be expressed frequently and over a long relationship to expect successful, continuous results. Particularly if the endowment is being established as an ongoing fundraising designation, the more meaningful the relationship, the more likely the donor will be moved to give a legacy gift.

 

• Effective Storytelling. Gathering as many elements together as possible to share the story about how endowments will lend to the continued growth and sustainability of your organization and how donors become strategic, perpetual, partners, should become a regular story in your Communication

 

If you’re ready to ignite your philanthropic culture, contact us today to see if endowment fundraising is a good fit for you.