2. 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 jhedrick@bwf.com

3. Overview of Session What is endowment? Should my station have an endowment? How does my station build an endowment?

4. What is Endowment? Invested funds Only income or portion of income is spent Provides security for the future

5. 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.

6. 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?

7. Endowment or Membership Year 1: January—December, 2006 ENDOWMENTMEMBERSHIP 2 donors at $25,000 32 members at $40 Total Endowment: $50,000Total $1,280 Income: $2,500 Income: $1,280 Expendable: $1,250 Expendable: $1,280 Year 2: January—December, 2007 ENDOWMENT: No activityMEMBERSHIP: On-air, mail, phone, web 0 donors26 members (80% renewal) Total Endowment: $51,250Total: $1,040 Income: $2,562.50 Income: $1,040 Expendable: $1,281.25 Expendable: $1,040

8. 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!

9. Will these donors stop making annual gifts? Positioning of the gift. Three-part approach.  Annual  Capital/endowment  Planned

10. 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.

11. 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

12. 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

13. 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

14. Sources of Revenue

15. 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

16. 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

17. 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

18. 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?

19. 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. Continued

20. 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?

21. 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

22. 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.