Building for the future: Two ways to grow endowments

Kitsap Community Foundation is honored to work with so many wonderful nonprofit organizations in our region that are improving quality of life every single day. We know that it’s important for you to grow endowment assets to create a permanent source of support for your mission.

You’ve likely made it a priority to provide ongoing education and information to your donors to help them understand how your endowment works and why it’s so important to the future of your organization. Occasionally, a donor may ask you about the difference between making a gift to support your endowment, or, in the alternative, establishing a separate endowment fund at Kitsap Community Foundation to support your organization.

Here’s a little background that may help you explain the differences to your donors. In either case, our team can help, so please do reach out.

Building your endowment fund. Many donors will want to support your endowment fund held at Kitsap Community Foundation. Your board of directors may, from time to time, elect to make transfers from your organization’s assets to the fund. Your organization’s endowment fund is sometimes referred to as “quasi-endowment” because your board of directors has some degree of flexibility to access the principal for certain stated purposes, such as emergencies. Annual distributions to supplement your organization’s budget are often made from the endowment fund based on market value percentages.

Donor-established endowment fund. Many donors will want to provide a permanent endowment fund for your organization. This can be done during one's lifetime or through a bequest. For endowment funds held at KCF, the board of directors and staff will provide annual disbursements to your organization and invest wisely to ensure that the principal stays intact in perpetuity. In some cases, donors prefer to name their permanent endowment, designated to support your organization, with a family name (e.g., the Smith Family Endowment Fund). Our team is available to meet with you and your donors to suggest the type of fund that best meets their philanthropic goals.

The Kitsap Community Foundation team is experienced at managing the accounting, investment, and distribution aspects of all types of endowment funds. When you work with Kitsap Community Foundation, it’s convenient and rewarding to establish and grow your organization’s endowment, as well as offer donors the option to set up a separate named endowment fund. Both types of gifts help your mission stay strong and improve the quality of life for future generations.