When you work in nonprofit leadership, you spend a lot of time focused on the here and now: raising enough to meet this year’s goals, delivering on today’s promises, and making sure nothing falls through the cracks.
But at some point, maybe during a board meeting, a donor conversation, or even a late-night budget review, a new kind of question pops up:
What would it look like to create something more permanent?
An endowment can feel like the answer to that question. It’s a tool that helps organizations plan beyond the next campaign or fiscal year and instead invest in their mission for the long haul. But for many nonprofits, especially small and midsized ones, the idea of starting an endowment can feel confusing, intimidating, or just… out of reach.
In this post, we’re not here to tell you whether you should start one today. Instead, we want to help you think through whether an endowment belongs in your organization’s long-term strategy, and what to consider before you begin.
Because here’s what we want every nonprofit leader to know: an endowment is not just for the biggest, best-funded organizations. With the right mindset and a clear approach, any nonprofit, regardless of size or budget, can begin building the foundation for long-term sustainability. You don’t have to count yourself out.
Over the past few years, nonprofits have faced a growing challenge: how to plan confidently for the long haul when so much feels uncertain in the short term.
Annual fundraising cycles, once reliable, have become increasingly unpredictable. Donor behavior is shifting. Grant funding can feel more competitive than ever. And board members and major donors are asking the same essential question: What’s the long-term plan?
At the same time, expectations are rising.
More and more, funders want to see signs of financial maturity. Not just a great mission, but a sustainable one. They want to know your organization has a plan to weather uncertainty, support future generations, and protect the programs that matter most. In short, they want to be confident their dollars will make an impact that lasts.
When I was working as Development Director for a nonprofit domestic violence shelter, I used to chuckle (and sigh) every time we came across grant questions that (often in this exact order) asked us to:
And I remember thinking: If I knew how to do all that, I wouldn’t need to ask you for the money in the first place!
That kind of pressure is part of why so many nonprofit leaders are looking for ways to reduce uncertainty and gain more control over their financial future. And for a growing number of organizations, even small and midsized ones, that’s leading to an important question:
This doesn’t mean every organization is launching one tomorrow. But it does mean more leaders are asking:
The truth is, you don’t have to be a multimillion-dollar institution to start planning for long-term resilience. And asking these questions now can help your organization grow in clarity, credibility, and confidence, whether you launch an endowment this year or years from now.
If the word endowment makes you think of multimillion-dollar universities or legacy foundations, you’re not alone. There’s a common belief that endowments are only for large, well-established institutions. You know, the ones with full-time finance teams and donor bases full of stock-savvy philanthropists.
But here’s the truth: that belief holds a lot of smaller nonprofits back from even considering an endowment as part of their future.
We hear things like:
These are real, valid concerns. But they’re often based on incomplete information.
An endowment doesn’t have to start big. In fact, I always say: it only takes one donor to start an endowment. And chances are, they’re already in your donor database:you just haven’t brought it up to them yet. This could come in many forms, such as a bequest, a donated life insurance policy, or a Qualified Charitable Distribution (QCD), just to name a few examples.
We work with one nonprofit that has no paid staff, less than a $100,000 annual budget, and is completely volunteer-run. One donor believed deeply in their mission and gave a gift that allowed them to start an endowment. One that has since become a meaningful resource in supporting their work. That donor didn’t just make a gift; they helped create a legacy.
You don’t need to have it all figured out. You don’t need millions in reserves. You just need a vision for the future and the willingness to start the conversation.
And while it’s true that a true endowment carries restrictions, there are also board-designated funds (sometimes called quasi-endowments) that offer more flexibility and can still help you build long-term stability.
For some organizations, starting small may offer the opportunity to build familiarity and momentum without feeling overwhelmed.. It gives you the chance to:
You don’t have to be a big-budget organization to think long-term. Sometimes, just raising the idea is what sets meaningful momentum in motion.
If you’re starting to wonder what it would take to set one up at your own organization, you're not alone. We're hearing this question more and more, which is exactly why we're hosting a free webinar on the topic.
Join us for: Endowment 101: How to Start Your Endowment the Right Way
Thursday, July 24, 2025 | 1:00 PM EST | Free to attend
Click here to register.
Here’s the good news: you don’t need to be ready to launch an endowment tomorrow to benefit from learning about how they work.
In fact, for many nonprofits, the first step isn’t financial, it’s philosophical. It’s about exploring whether an endowment aligns with your organization’s values, goals, and vision for the future.
If you answered “yes” to a few of these, or if you’re simply curious about what’s involved, that’s a sign you’re ready to learn more. Here are a few resources to help you dive deeper into some of the requirements and responsibilities of managing an endowment:
And that’s exactly what our upcoming webinar is designed to help with. Join us for Endowment 101: Building Your First Endowment the Right Way, a straightforward, jargon-free conversation to help you and your board feel more informed and empowered on what it takes to start and manage an endowment for your nonprofit.
If you’ve made it this far, chances are the idea of an endowment has at least sparked your curiosity, and that matters.
Because exploring the possibility of an endowment isn’t just about setting money aside. It’s about shifting the way your organization thinks about its future. It’s about stepping out of survival mode and into a mindset of sustainability. Not just for this year, but for the next generation of your mission.
You don’t need to have every detail figured out. You don’t need to be ready to launch anything tomorrow. And you definitely don’t need a million-dollar gift sitting in your inbox.
What you do need is the courage to ask big-picture questions, the willingness to explore new strategies, and a team that believes in where your mission is headed.
An endowment might not be your next move, but it could be part of your long-term vision. And sometimes, all it takes is one conversation to start heading in that direction.
If this topic has sparked questions or you’re ready to explore more, we’re hosting a free webinar to help you feel informed and empowered about what it really takes to start and manage an endowment for your nonprofit.
Endowment 101: How to Start and Sustain an Endowment for Your Nonprofit
Thursday, July 24, 2025 | 1:00 PM EST | Free to attend
We’ll walk through the fundamentals in plain language, answer common questions, and help you understand whether this could be the right next step for your organization—whether now or in the future.
Click here to register and learn more.