Every nonprofit wants an endowment—the bigger the better. Endowment earns income that does not need to be raised each year. For a nonprofit, endowment is the equivalent of teaching a person how to fish.
Why then do so few nonprofit organizations have endowments capable of producing income of significant size in relationship to their annual budgets? Because hard pressed nonprofits find it hard to justify raising $10,000 today and then setting it aside to earn at best a few hundred dollars for this year’s needs.
In reality endowment campaigns are just as important as any other fundraising effort an organization can undertake. They bring in the support that can provide the stability needed to allow a nonprofit to concentrate on mission rather than survival.