Nonprofit Endowment Building Challenge

Legacy Foundation is excited to announce the Nonprofit Endowment Building Challenge, a matching grant initiative designed to build nonprofit capacity and sustainability through establishing or growing endowments at Legacy Foundation. This initiative is made possible through funding from Lilly Endowment GIFT VII.

Downloads
Nonprofit Endowment Building Challenge Application
Nonprofit Endowment Building Challenge Fact Sheet

About Endowments

An organization endowment is a fund that is subject to the requirement that the principal be maintained in perpetuity and invested to create a permanent source of income for the organization. Donations made to an endowment at the Legacy Foundation are invested for the benefit of the organization. Organizations cannot access the principal amount of the fund but can access the accrued income from the endowment dividends. Distributions from an endowment may be utilized for all aspects of a charitable organization’s operations, including programs, administrative overhead, rent, utilities, salaries, capital campaigns, special projects, funding shortfalls, and emergency needs.

Legacy Foundation encourages local organizations to explore creating endowment funds because:

  • Endowments build long-term sustainability for nonprofit organizations
  • Endowments provide a growing stream of revenue for nonprofit organizations over good economic times and bad
  • Endowments held at the Legacy Foundation participate in the Foundation’s investment pool, providing organizations with access to diversified investment vehicles and strategies typically beyond the reach of smaller investors
  • Organizational fundholders at Legacy Foundation benefit from having the Legacy Foundation as a partner in philanthropy. Nonprofits with funds at Legacy have access to a customized online giving page, gift acknowledgement, acceptance and administration of planned gifts, help in developing endowment marketing plans, superior investment services, donor outreach, and additional funding and training opportunities.

Guidelines

The Legacy Foundation will offer an Introduction to Endowment Building Orientation session to help you determine if endowment building is right for your organization. Information will be presented on benefits and risks associated with an endowment. This session is designed for executive directors, fund development staff, and board members. Eligible organizations must be 501c3 and have or plan to start an endowment at Legacy Foundation.

Donations will be matched $1 for every $2 raised. For example, if a nonprofit raises $20,000, Legacy will match $10,000. This will provide a total endowment fund balance of $30,000! The minimum goal to participate in this challenge is $5,000. The maximum amount for this challenge is $50,000. Participating organizations will be required to sign a participation agreement and a fund agreement, if the endowment is new. The types of gifts matched include cash, securities, real estate, IRA distributions, charitable gift annuities, life insurance, and irrevocable charitable remainder trusts. In-kind gifts will not be matched. Please contact Legacy Foundation if you anticipate raising more than $50,000 or have questions regarding eligible gifts.

In addition to the matching funds, various special incentive challenges will be offered throughout the course of the year. These may include incentives such as social media bonuses, first organization to reach 50% of goal, most board participation, etc.

Once you have determined that participating in the Endowment Building Challenge is right for your organization, the next step is to begin the application process. Applications are due March 1, 2019. Selected nonprofits have 12 months to meet their challenge. The selected organizations will receive technical assistance and peer-learning support throughout the year.

The Endowment Building Challenge will be considered complete and matching dollars will be transferred to the organization’s endowment at the end of the month in which both of the following conditions have been met:

  • The organization has attended all 4 quarterly peer learning cohort sessions.
  • The organization has reached their fundraising goal or the match period has ended.

If an organization exceeds its fundraising goal, matching funds can only be guaranteed toward the predesignated goal. If an organization does not achieve its fundraising goal, donations received will be matched, and the remaining money may be offered to any organization that exceeded the set goal.

  • Financial readiness of the organization
  • Commitment of the board and staff
  • Organization’s readiness to take on campaign

Important Dates

The Legacy Foundation will offer an Introduction to Endowment Building Orientation session to help you determine if endowment building is right for your organization. Information will be presented on benefits and risks associated with an endowment. This session is designed for executive directors, fund development staff, and board members. Eligible organizations must be 501c3 and have or plan to start an endowment at Legacy Foundation.

February 13, 2019

Endowment Building Orientation Session

March 1, 2019

Application Due

March 15, 2019

Applicants notified of decisions and provided agreements for signature

April 1, 2019

Executed agreements due to Legacy

April 1, 2019

March 31, 2020 – Match period