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Create a Nonprofit Endowment Fund

A Powerful Tool to Sustain Your Mission!

A permanent endowment is a powerful tool that can help your organization sustain its mission. Madison Community Foundation encourages and works with nonprofit organizations and their supporters to build this long-term, sustainable source of funding. Building a permanent endowment fund helps provide current and future stability for your nonprofit’s work and sends a message to your supporters about your long-term financial stability.

  • A man and three children play in a brightly colored bouncy house at a Boys & Girls Clubs event at Penn Park
  • Group of friends hanging out at the park
  • Lemur at the Henry Vilas Zoo
  • A child in a wheel chair is lifted into a mobile library that is pained with images of children reading books
  • Kids assemble birdhouses with help from an older man

The Advantages of Building an Endowment Fund

Provide your organization with a predictable annual income to support your work and help you achieve your mission.

  • Provide a permanent source of funding

    MCF’s endowment funds are permanent. Funds contributed are pooled with MCF’s assets and invested to provide income in perpetuity.

  • Broadens your organization’s financial base

    Building a strong endowment fund means you’ll always have an income stream, even if annual donations fluctuate or grants aren’t available.

  • Reduces pressure on annual fundraising

    Knowing you can rely on income from your endowment fund means you may be able to spend less time raising funds each year and more time focused on your mission.

  • Attracts donors who want to provide long-term support

    Donors often want to know that their support of your organization will last more than a lifetime. Providing them with the option to support your endowment fund in addition to your annual programming can be attractive and could lead to higher gift amounts.

  • Encourages planned giving

    Many donors want to leave a legacy of support for your organization through their will or estate plans. Endowment funds provide a natural place for your donors to leave a legacy of support that will keep giving long after their lifetime.

MCF Can Help You Start and Build Your Endowment

Starting an endowment fund at MCF is straightforward and easy. But creating the fund is just the start. MCF’s staff can help you develop strategies to grow your fund and attract legacy gifts from your supporters. You have the comfort of knowing you’re working with people who know and love our community, and are working to help you achieve your mission.

  • MCF manages the fund administration, reporting and investments on your behalf.
  • We process incoming gifts, including harder to process gifts that you may not have the capacity to handle internally, and provide receipts for donors.
  • MCF staff can help you establish and provide support to strengthen your legacy giving program.
  • We offer charitable gift annuities to your donors who want to help create or build your endowment while also receiving current income.
an infographic showing the growth of an endowment fund using seeds, saplings and a tree to represent growth

Ready to Open a Fund?

Nonprofit organizations can start an endowed fund with as little as $50,000. MCF offers low administrative fees starting at 1%, which lower on a sliding scale to 0.1% as fund balances increase. As a 501(c)3 organization, MCF doesn’t make a profit from the administrative fees it collects; that money stays in the community to support MCF’s work.

Discover the fund options available for nonprofit organizations. To get started, contact our staff or call our office at 608-232-1763.

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