1. YWCA Endowment Funds
Securing Our Future
November 22, 2013

2. YWCA USA Fund Raising Training Series
A series of 6 webinars designed to help local
YWCAs build their fund development capacity:
Fund Raising 101 (June 28)
Developing Your Annual Fund Raising Plan (July 25)
Major Gifts (Aug. 22)
Fund Raising Events (Sept. 19)
Capital Campaigns (Oct. 24)
Planned Giving/Endowment (Today)
With Rita Ryder and Beth McCaw

3. Key Definitions Endowment gifts are special: made from
Planned Gifts: A variety of charitable giving techniques
by which donors can achieve philanthropic, financial
and estate planning goals. A planned gift may be
directed to:
An endowment fund
An annual fund (usually for a special purpose)
A capital campaign or special major project
Endowment Fund: Assets held by a charity for charitable
purposes, which, under the terms of the donor’s gift instrument,
can’t be spent in their entirety on a current basis. The principal
of the fund remains intact; income is appropriated for
annual operations.
Endowment gifts are special: made from
wealth built over a lifetime

4. More Important Definitions
True Endowment: consists of funds designated to the endowment by the donor. Funds remain in the endowment “in perpetuity”.
Quasi-Endowment: funds are restricted by the Board (not the donor) to function as endowment. Some Boards:
Restrict all gifts made through bequests to endowment (unless otherwise restricted by the donor)
Restrict unusually large gifts that aren’t likely to recur in upcoming budget years to endowment (unless otherwise restricted by the donor)
Both of these Quasi-Endowment practices are prudent, and build the YWCAs endowment fund

5. YWCA Endowments Why So Important?
They serve a critical purpose:
Create a reliable revenue stream
Legacy-making:
Plant an acorn
Create a pipeline
Make it part of your YWCA’s Fundraising DNA:
Integrate into your ongoing fundraising plan
You can begin small….limited time and resources
Doesn’t compete with (can enhance) your annual fund

6. Endowments: How Are Local YWCAs Doing?
162 (71%) have endowment funds (or Board-restricted funds operating as endowment)
Size of endowment funds:
Under $100,000: 17%
$100,000 and above: 83%
______________________
Over $1 million: 28%
$10 million +: 2%

7. YWCA Qualities That Support Endowment Gifts
Strong legacy
Effective performance
Prudent financial management
Leadership continuity and strength
Credible process for investing funds
Donor accountability and stewardship
YWCA
Assets

8. Endowment Tools Direct Gifts (current) Bequests (deferred)
Life Insurance (beneficiary upon death)
Retirement Plan Assets (401k, 403b, IRA, Keogh)
Charitable Gift Annuity
Charitable Remainder Trust
Charitable Lead Trust
Remainder Interest in a Residence

9. Getting Ourselves Organized
Planned Giving Committee
Asset Management Agent
sset Management Agent
Legal Resource
Lead
Staff
Emeritus Board
Board Rep
Allied Professionals
CEO
Dev. Staff
Community
Foundation
YWCA Investment Committee
Bank or Trust Firm
A combo
Resource list of
advisors to assist donors with specific tools
Training for Board and Staff: Endowment “Case”,
Messages, Prospects, Cultivation

10. Our Planned Giving Case
WHY THE YWCA?
Legacy and history—(you’ve helped lay the foundation)
Effectively address critical needs of women + families; “move dial”
Priority needs = Women can’t pay
Enables YWCA to innovate, respond to emerging needs
Financial accountability
Stability and continuity
List more of your
endowment-worthy assets
HOW YOU (DONOR) BENEFIT
Continue to support the YWCA in perpetuity (make a gift that generates your annual fund gift?)
Act on your values; convey your values to your family
Memorialize yourself or a family member
Tools to meet your income and tax needs and goals

11. Our Endowment High Priority Prospects
YWCA Board Members
Board Alumnae….especially “Emeritus”
Donors who give consistently,
regardless gift size
Major Donors
Long term staff alumni (and current senior staff)
YWCA committee members and volunteers
Other variables, e.g.: age, family composition, resources, years of engagement, number of philanthropic interests

12. Where There’s a Will, There’s the YWCA! Promoting Your YWCA Endowment
Board Campaign: 100% participation
Add-on to Annual Fund Drives: “Everyone can leave a legacy”
Add-on to Capital Campaigns: “Protect your investment in new facilities”
Include Endowment messages in all communications: newsletters, website, social media
Create materials e.g. “Guide to YWCA Planned Giving”
Conduct special Endowment receptions/tours for:
Board Alumni, special donors
Allied Professionals

13. Planned Giving Notification Form A Priority!!
Why the “Notification Form” needed: plan, recognize, steward
It’s a 1-Pager, and includes:
Contact info, including spouse/partner’s name
Planned Giving “vehicle” to be used
Recognition preferences
Gift intentions (e.g. purposes)
YWCA information: Tax ID number, contact person
Donor’s signature/date; legal/estate advisor (if appropriate)
Doesn’t need to include gift amount; is a “non-binding”document

14. Sample Bequest Language
Specific Bequest:
I give to the YWCA (full legal name) the sum of
$__ (or __%) of my estate to forward its mission in the community
Residual Bequest:
I give to the YWCA (full legal name) all, (or __%) of the rest,
residue and remainder of my estate to forward its mission in the community
Designated Gift: If donor restricts gift to a specific program, need,
or issue, make the language as broad as possible e.g. “to meet basic
needs”, and add: “the YWCAs Board may redirect my gift to an area
consistent with my intent if community needs or circumstances call for it”.
Contingent Bequest: If (insert name) is not living at the time of my
demise, I give the YWCA (full legal name) the sum of $ (or __%)
to be used…..

15. Recognition and Stewardship
Recognition is important to retain the gift, possibly “grow” the gift, benefit from the donor’s engagement.
Create a Planned Giving Legacy Group e.g.
“YWCA Council for the Future”
Honor on plaques, legacy wall, etc.
Special designation at YWCA events e.g. on nametag
Hold an annual gathering: update, input, volunteer opportunity
Recognize in YWCA newsletters, annual report

16. Board Stewardship of YWCA Endowment Funds Board Policies e.g.:
Gift acceptance
Investment goals, methods
Asset allocation
Distribution rate e.g. 4-5% annually
UPMIFA Requirements (Uniform, Prudent Management of Institutional Funds Act)
Annual vote on transfer of funds to operating budget (4-5% annually)
Regular reports to the Board on status/performance
BOARD NEVER INVADES THE ENDOWMENT FUND PRINCIPAL

17. Phasing In Your Endowment Program
PHASE 1
Identify staff lead
Board gift acceptance policies
Basic board/staff
training
Gift notification form
Bequest language
CASE and messages
Integrate into communications
Annual Fund add-on
PHASE 2
Planned Giving Committee
Board campaign
Legacy Society
Inaugural members
campaign
Prospect outreach
Less complex “tools”
Asset management agent
Investment goals/
asset allocation
policy
PHASE 3
Planned Giving Officer (staff)
More complex tools
Endowment Campaign

18. Resources/Tools We’ll Send You
The PowerPoint from this webinar
Definition/features of Endowment/Planned Giving “Tools”
Example of a Planned Giving/Endowment CASE
Example of a Planned Gift Notification Form
More detailed UPMIFA information (link to)
Sample letter for Board Endowment Campaign
Send your questions or comments to Rita Ryder:

19. Q & A