Our Endowment Plan
To sustain the ever-increasing demand for services the board of directors has welcomed and approved a plan to extend the Greater Things Campaign from $8M to $11M. For thirty-two years Good News Clinics has been an essential community resource. This organization, through the support of our community and because of a history of diligent stewardship, is in a healthy financial position to continue delivering critical services for many years to come. One of the key elements of the strategic plan is to grow our endowment fund. This invested fund produces additional operating revenue, which is imperative as our budget has now grown to surpass $3 million annually. A strong endowment reduces dependence on annual giving by individual donors
What is an Endowment?
An endowment is a fund that is invested to provide long-term support for a particular nonprofit organization or cause in perpetuity. A portion of the fund is made available annually while the remaining assets are retained in the fund to provide for growth over time.
Each year, a portion of the endowment is typically paid out as an annual distribution to fund the organization’s work. Any appreciation above this annual distribution is retained in the endowment so that it can continue to grow and support future generations. This disbursement is predictable money coming in that does not have to be fundraised every year.
Generally, endowments are designed to keep their initial investment amount intact and growing, spending only the investment income for organizational expenses.
Why Donors Like Endowments?
Often donors want to give endowment donations because gifting endowments not only offers immediate tax benefits, but also creates a legacy of sustainable giving that has an impact long beyond their lifetime. It’s a gift they give once that can provide for their favorite organization for generations to come.
Endowment funds are not only great security for the nonprofit, but they ensure donors that the nonprofit’s mission will endure into the future. Endowed funds can be income streams for the life of an organization, sustaining them with invaluable financial support through unstable times. Endowments allow nonprofits to maintain their staff and continue their programs and services. During stronger economic times, nonprofits can use the funds to expand support and develop new programs and services.