Why create an endowment for an agency within the community foundation?

What is the potential value of an endowment for a nonprofit organization? How can an endowed fund fit with long-term plans for financial stability? And why create such a fund within ECF?

These are all questions that boards need to discuss as they perform their responsibilities, and the Foundation's staff, board, and investment committee are available to discuss them with you. 

In any case, the benefits of working with a community foundation are best appreciated by looking at endowments as part of a long-term relationship rather than as a solution to short-term needs.

Some answers:

• An endowment can provide an important new revenue stream
• An endowment provides opportunities for your board and development staff to talk with current donors about long-term support
• The community foundation can provide you with professional help concerning deferred giving and acquisition of large gifts--expertise few agencies have on staff
• The community foundation offers professional financial management of large gifts and can unburden your agency from such responsibilities
• An endowment at a community foundation and the visibility the foundation can offer may bring enhanced credibility
• Donors may be reassured about transfering substantial assets for the benefit of your organization upon learning that the community foundation will ensure that their gifts will be used in perpetuity for the intended purpose, even if your agency changes or closes its doors