Endowment Thresholds/Limitations

Cheena DeAraujoDesir · April 2016

Hi Community,

We are trying to get a handle on our endowments and restricted gifts, but wanted to check in with the group about what thresholds they have in place to setting up endowed or restricted gifts; with particular interest in the minimums. Also, do you have any particular policies that govern the acceptance of endowed gifts? We really want to strengthen this so that we can go to donors and potential constituents with a set policy and procedure. Any advice would be appreciated? Also, if you would be willing to talk to me via the phone that would be great too.

Rachel Slager 2 · April 2016

Threshold for endowed giving has been $25K at the larger organizations I've worked at and $10K at smaller orgs (or maybe that was the threshold standard about 10 years ago) with lower donor levels, and $50K at the largest org which later put it back to $25K. I've never worked anywhere that had a threshold for restricted gifts.

Policies of acceptance depend on the type and size of the organization, largely to ensure that accepted gifts are not problematic. Others might have better examples, but here's mine: we had a policy for an endowed scholarship at a public university stating that the scholarship is not restricted to students by anything that violates EEOC, Title 9, or any school-wide policy regarding discrimination. And another policy that the naming and endowment of operating a building could be changed after a certain number of years, either to honor a future donor remodeling a building or to remove naming that had become problematic.

I think endowment agreement policies need to demonstrate to a potential donor that their money will be used the way they want it to be, but only as long as it isn't harmful to the organization. (The tricky part comes when an org starts borrowing from their endowments....)

Cheena DeAraujoDesir · April 2016

Rachel Slager:

Threshold for endowed giving has been $25K at the larger organizations I've worked at and $10K at smaller orgs (or maybe that was the threshold standard about 10 years ago) with lower donor levels, and $50K at the largest org which later put it back to $25K. I've never worked anywhere that had a threshold for restricted gifts.

Policies of acceptance depend on the type and size of the organization, largely to ensure that accepted gifts are not problematic. Others might have better examples, but here's mine: we had a policy for an endowed scholarship at a public university stating that the scholarship is not restricted to students by anything that violates EEOC, Title 9, or any school-wide policy regarding discrimination. And another policy that the naming and endowment of operating a building could be changed after a certain number of years, either to honor a future donor remodeling a building or to remove naming that had become problematic.

I think endowment agreement policies need to demonstrate to a potential donor that their money will be used the way they want it to be, but only as long as it isn't harmful to the organization. (The tricky part comes when an org starts borrowing from their endowments....)

Thanks for the reply, Rachel. This is helpful.

Endowment Thresholds/Limitations

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