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  • 1.  Increasing Minimum Endowment Levels

    Posted 08-23-2024 11:29 AM

    As we approach our next campaign, we are considering raising the minimum level required to create an endowed fund.  What are the keys to success?

    We intend to start with buy in from the advancement committee of our board.  We know, too, that clear communication with the board and all of our constituents will be essential as will timing and assessment of capacity/interest by potential donors.  

    What else should we consider?  What else are we missing? 



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    Tracy Rush
    Executive Director, Advancement Services
    Otterbein University
    trush@otterbein.edu
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  • 2.  RE: Increasing Minimum Endowment Levels

    Posted 08-23-2024 12:14 PM
    Tracy, you are correct that communication is key.

    Please keep in mind how long it has been since your last increase. Given the state of the economy and ongoing tuition increases, I advocate for a tri-annual review of these minimums.

    If you do this every three years, the impact and communication delivery will be minimized. If it has been five or more years since your last increase, your communication piece (and FAQ posted on your website) will require a more thoughtful and detailed discussion.

    You will also want to have a different communication document for donors who are already in the funding process under current endowment minimums, assuring them that you will not now ask for more. However, for donors who have not signed an endowment agreement but are being cultivated for an endowment gift, you will need to determine how best to handle them.

    For donors in the cultivation stage, I would consider an "extension" to seal the deal. For example, if you decide to raise the minimum on July 1, 2025, donors already in discussions might be allowed until 12/31/2025 to sign their agreements under the former minimums but will be subject to the new minimums unless agreements are executed by that date.

    This extension recognizes that the donor was under one impression regarding their fund and encourages the execution of that agreement!

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Increasing Minimum Endowment Levels

    Posted 08-23-2024 12:25 PM

    Very helpful-and thoughtful as always.  Thank you, John.

     

    Tracy Rush

    Executive Director Advancement Services

    Otterbein University

    1 South Grove

    Westerville, OH 43081

     




    Original Message


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