Fiscal Armor: The Art and Science of Endowment

Just as my pandemic-stamina was about to plummet, a notice about my eligibility for a covid vaccine arrived in my inbox.  

Whew! Just in the nick-of-time, my revitalization has begun. I hope your revitalization is underway too. Especially if, like me, you have over-committed this past year.

With this exuberance, I also look back to last year, as did many of my clients who took a long hard look at their organization's "fiscal armor,” or as I like to call it: the art and science of endowment building. 

Yes, endowment building can be complicated. Yes, it can be counter-culture. Yes, the delayed gratification can make us question the requisite effort.  

And yet, if an organization's mission and impact are truly worthy of both greater possibilities and permanence, I urge you to just do it.

I send an even more emphatic message to leaders of organizations with a loyalist base of major donors who generously invest philanthropically today but have not yet considered the organization's future state—let alone the pivotal role they might play to ensure a continuous cycle of flourishment. I urge you to just do it.

Easier said than done, I know. 

What does it mean to just do it? 

Don’t overcomplicate it. Do not let perfection be the enemy of good.

I offer two giant preliminary steps forward for your immediate consideration.

Begin with Good Sense

If you are a steward of a healthy and mission-critical nonprofit, prioritizing endowment just makes good sense. In other words— imagine being able to rely on a funding model that better meets the needs of today AND allows your organization greater leeway to envision and plan for multiple years at a time. Wow. What a concept!

Identify and Inspire Your Champions

Though no one can predict or control the future, we know that nonprofits with robust endowments pre-covid fared much better in these tumultuous times than organizations that are overly reliant on year-to-year funding models. Let’s take steps to get out of this cycle.

Indeed there is so much more to say on the subject of endowment building.  But for today, I will close this musing with sage words from the indomitable Frances Hesselbein, former CEO of The Girl Scouts of America, who (at almost 105) is currently known as the oldest active CEO, 

“People want to be a part of something that makes a difference, that transcends the ordinary. They want a star to steer by. They need a clear, compelling  mission—- a reason for being, a purpose.” 

Safeguarding and ensuring continuous flourishment of the people and causes we value most is what life is all about.  Now isn’t this the best boost for personal and institutional revitalization?  I think so. 

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