Fundraising for Endowment

Corporation for Public BroadcastingMajor Giving Initiative

Friday, October 6, 20069:15–10:30 AM

Presented by:

Janet L. Hedrick, CFREBentz Whaley Flessnerwww.bwf.comjhedrick@bwf.com

Overview of Session

What is endowment?

Should my station have an endowment?

How does my station build an endowment?

What is Endowment?

Invested funds

Only income or portion of income is spent

Provides security for the future

The Endowment Fund

What is endowment?

Designated for endowment by donor.

What is quasi-endowment?

Not designated for endowment by donor.

Designated by another person or group.

Often Board decision.

Decision can be changed.

Should my station have an endowment?

Do you have “permanent” and/or dependable sources of support?

Will dollars from those sources grow to meet needs in the future?

Endowment or Membership

Year 1: January—December, 2006

ENDOWMENT MEMBERSHIP

2 donors at $25,000 32 members at $40

Total Endowment: $50,000 Total $1,280

Income: $2,500 Income: $1,280

Expendable: $1,250 Expendable: $1,280

Year 2: January—December, 2007ENDOWMENT: No activity MEMBERSHIP: On-air, mail, phone, web

0 donors 26 members (80% renewal)

Total Endowment: $51,250 Total: $1,040

Income: $2,562.50 Income: $1,040

Expendable: $1,281.25 Expendable: $1,040

Balance Between Current and Future Needs

But my station needs money now!

If our best donorsmake gifts for endowment, we won’t be able to make our membership goal!

Will these donors stop making annual gifts?

Positioning of the gift.

Three-part approach.

Annual

Capital/endowment

Planned

Example: John and Jane Viewer

Increase annual gift to $10,000/year.

Contribute $10,000/year for endowment.

Consider a provision in their wills.

Total: $100,000 paid over five years.

Result of gift.

$50,000 for current support.

$50,000 for endowment.

Restricted or Unrestricted

Large gift = high likelihood of restriction.

Be flexible.

Develop gift opportunities to suggest.

Create specific, yet broad areas. Children’s programming

Educational outreach for children

Local program fund

Fund for arts and culture

Fund for news and civic affairs

How does my station begin an endowment?

Decision on organizational priorities.

Endorsement by appropriate leaders.

Policies and procedures.

Investment policies

Expenditure policies

Plan for seeking endowment gifts.

Short-term

Long-term

Making the Case for Endowment

What is the case?

Why should an individual make a gift for endowment?

Importance of endowment to station.

Example: WPSU Case for Endowment—Attachment 1

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

1996 2006

Budget Years

State appropriations: Special

State appropriations: General

Gain on perpetual trust

Interest income

Capital additions

Other grants

Community service grants

Miscellaneous income

Underwriting and advertising

Membership income

Sources of Revenue

Marketing of Endowment

Integrated development plan Communications

On-air spots Publications Website—Attachment 2 Other

Donor Profiles Highlight motivation

Volunteer Involvement Committee or other volunteer structure

Establishing Guidelines

Gift size for recognition Number of years for pledges Recognition

Within current recognition program

Additional recognition Duration of recognition

Restrictions Acceptance of planned gifts Sample plan and guidelines—Attachment 3

Special campaign or not?

Special endowment campaign

Increased visibility

Beginning and end of effort

Separate from other efforts

No special endowment campaign

Highlight as additional support

No end to effort

Integrated with other development programs

Setting Goals

Who are your prospects?

How long will it take to cultivate and solicit those prospects?

How will you determine other prospects?

What staff and volunteers are needed?

How does the effort fit within other development programs?

Setting Goals

Establish monthly, quarterly, and annual goals.

Number of prospects identified.

Number of contacts with potential donors.

By development staff.

By other staff.

By volunteers.

Total dollars received.

Total dollars pledged.

Number of donors.

Continued

Evaluating Success

Did you achieve your goals?

What did you do well?

Where could you have made improvements?

What is needed for future success?

How does the plan need to be revised?

Sharing the Stories

Judy Witt, Special Endowment Funds: WTIU, Bloomington, IN

Kurt Mische, Endowment through Planned Giving: Vegas PBS (KLVX), Las Vegas, NV

Tom Yourchak, Endow-A-Day: WPSU, University Park (State College), PA

Summary

Endowment gives the station security for the future.

Current support and endowment giving can be combined in a request.

Guidelines and goals are important.