Fundraising for Endowment Corporation for Public Broadcasting Major Giving Initiative Friday, October 6, 2006 9:15 –10:30 AM

Presented by:

Janet L. Hedrick, CFRE Bentz Whaley Flessner www.bwf.com

[email protected]

Overview of Session  What is endowment?

 Should my station have an endowment?

 How does my station build an endowment?

What is Endowment?

 Invested funds  Only income or portion of income is spent  Provides security for the future

The Endowment Fund  What is endowment?

 Designated for endowment by donor.  What is quasi-endowment?

 Not designated for endowment by donor.  Designated by another person or group.

 Often Board decision.

 Decision can be changed.

Should my station have an endowment?

 Do you have “permanent” and/or dependable sources of support?  Will dollars from those sources grow to meet needs in the future?

Endowment or Membership

Year 1:

ENDOWMENT 2 donors at $25,000 Total Endowment: $50,000 Income: $2,500 Expendable: $1,250

Year 2:

ENDOWMENT: No activity 0 donors Total Endowment: $51,250 Income: $2,562.50

Expendable: $1,281.25

January —December, 2006

MEMBERSHIP 32 members at $40 Total $1,280 Income: $1,280 Expendable: $1,280

January —December, 2007

MEMBERSHIP: On-air, mail, phone, web 26 members (80% renewal) Total: $1,040 Income: $1,040 Expendable: $1,040

Balance Between Current and Future Needs  But my station needs money now!

 If our best donors make gifts for endowment, we won’t be able to make our membership goal!

Will these donors stop making annual gifts?

 Positioning of the gift.

 Three-part approach.

 Annual  Capital/endowment  Planned

Example: John and Jane Viewer  Increase annual gift to $10,000/year.

 Contribute $10,000/year for endowment.

 Consider a provision in their wills.

 Total: $100,000 paid over five years.

 Result of gift.  $50,000 for current support.

 $50,000 for endowment.

Restricted or Unrestricted  Large gift = high likelihood of restriction.

 Be flexible.

 Develop gift opportunities to suggest.

 Create specific, yet broad areas.

 Children’s programming  Educational outreach for children  Local program fund  Fund for arts and culture  Fund for news and civic affairs

How does my station begin an endowment?

 Decision on organizational priorities.

 Endorsement by appropriate leaders.

 Policies and procedures.

 Investment policies  Expenditure policies  Plan for seeking endowment gifts.

 Short-term  Long-term

Making the Case for Endowment  What is the case?

 Why should an individual make a gift for endowment?

 Importance of endowment to station.



Example: WPSU Case for Endowment — Attachment 1

Sources of Revenue $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 1996 2006 Budget Years State appropriations: Special State appropriations: General Gain on perpetual trust Interest income Capital additions Other grants Community service grants Miscellaneous income Underwriting and advertising Membership income

Marketing of Endowment  Integrated development plan  Communications  On-air spots  Publications  Website —

Attachment 2

 Other  Donor Profiles  Highlight motivation  Volunteer Involvement  Committee or other volunteer structure

Establishing Guidelines  Gift size for recognition  Number of years for pledges  Recognition  Within current recognition program  Additional recognition  Duration of recognition  Restrictions  Acceptance of planned gifts  Sample plan and guidelines —

Attachment 3

Special campaign or not?  Special endowment campaign  Increased visibility  Beginning and end of effort  Separate from other efforts  No special endowment campaign  Highlight as additional support  No end to effort  Integrated with other development programs

Setting Goals  Who are your prospects?

 How long will it take to cultivate and solicit those prospects?

 How will you determine other prospects?

 What staff and volunteers are needed?

 How does the effort fit within other development programs?

Continued

Setting Goals  Establish monthly, quarterly, and annual goals.

 Number of prospects identified.

 Number of contacts with potential donors.

 By development staff.

 By other staff.

 By volunteers.

 Total dollars received.

 Total dollars pledged.

 Number of donors.

Evaluating Success  Did you achieve your goals?

 What did you do well?

 Where could you have made improvements?

 What is needed for future success?

 How does the plan need to be revised?

Sharing the Stories  Judy Witt, Special Endowment Funds: WTIU, Bloomington, IN  Kurt Mische, Endowment through Planned Giving: Vegas PBS (KLVX), Las Vegas, NV  Tom Yourchak, Endow-A-Day: WPSU, University Park (State College), PA

Summary  Endowment gives the station security for the future.

 Current support and endowment giving can be combined in a request.

 Guidelines and goals are important.