Foreword xiii

Preface xvii

Part 1: Financial Resilience 1

1 What Is Endowment? 5

2 Are You Ready to Build Endowment? 33

3 A Summary of Endowment-Building Methods 55

4 Making the Case for Support and Marketing Endowment 75

5 Policies and Practices for Managing Endowment 109

6 Alternatives to Endowment 135

Part 2: Enduring Relationships 155

7 Who Gives, Who Gives to Endowment, and Why 161

8 How Endowment Donors Give and How They Are Engaged 189

9 Achieving and Measuring Success 217

About the Author 243

Acknowledgments 245

Appendix: References and Resources 247

Bibliography 269

The Donor Bill of Rights 275

Index 277

Praise for THE Endowment HANDBOOK

“The Endowment Handbook is an invaluable resource for anyone involved in the nonprofit sector. The author’s expertise and practical advice offer a roadmap for building financial resilience and fostering strong, lasting relationships with donors.”
— Bernice Martin Lee, CEO, Epilepsy Foundation of America

“This book is a practical guide that will empower nonprofits to thrive in an increasingly dynamic charitable landscape. Every nonprofit leader should have this book on their desk.”
— Nathan Chappell, Co-author of The Generosity Crisis: The Case for Radical Connection to Solve Humanity’s Greatest Challenges

“Drawing deeply upon her decades of experience in nonprofit leadership, fundraising, and philanthropy, Laura MacDonald has provided a timely and in-depth resource for nonprofit professionals, board members, and donors that will provide a practical guide to strengthening the organizations that serve the common good.”
— Una Osili, PhD, Associate Dean for Research and International Programs, Lilly Family School of Philanthropy, Indiana University

“In The Endowment Handbook, readers will see what all of us in the sector have come to expect: thoughtful consideration, practical application, and commitment to lasting impact for nonprofits. Laura has made endowments accessible to all nonprofits looking to achieve long-term sustainability and impact in our communities.”
— Josh Birkholz, CEO of BWF and author of Fundraising Analytics and BeneFactors

"My working relationship with Laura spans two decades of witnessing the wisdom and counsel she has shared with thousands of nonprofit organizations across the United States and the world. This book is a challenge to seize this moment of the greatest wealth transfer in history. It is a compelling and pragmatic guidebook for the nonprofit professional, board member and donor alike.
-Steven S. Moore, Chief of Staff, The Columbus Foundation

"I have turned to Laura MacDonald on many occasions to make the complex simple in this essential world of charitable giving. In The Endowment Handbook, readers will see what all of us in the sector have come to expect: thoughtful consideration, practical application, and commitment to lasting impact for nonprofits. She has made endowments—thought to be reserved for elite institutions—accessible to all nonprofits looking to achieve long term sustainability and impact in our communities."
- Josh Birkholz, CEO of BWF.  Author of Fundraising Analytics and Benefactors

"The Endowment Handbook is not just a book; it's a manifesto for building a community of passionate advocates who, together, can transform visions of positive change into permanent, tangible realities. It will take you on a journey through the essential elements of donor engagement and help you discover how to nurture relationships that withstand the test of time.  It's a rewarding journey.  Take it!"
- Russell N. James III, J.D., Ph.D., CFP®, Professor & CH Foundation Chair in Personal Financial Planning

"As a nonprofit CEO and career long fundraiser, I have witnessed firsthand the transformative impact of developing a philanthropic growth model, a core theme of Laura's work, which has been pivotal in advancing our vision and expanding our impact. The Endowment Handbook is an invaluable resource for anyone involved in the nonprofit sector. The author’s expertise and practical advice offer a roadmap for building financial resilience and fostering strong, lasting relationships with donors. This book is a testament to Laura's dedication to philanthropy and her commitment to empowering organizations to achieve their missions."
- Bernice Martin Lee,  CEO, Epilepsy Foundation of America

"In The Endowment Handbook, Laura MacDonald provides an essential blueprint for nonprofit financial resilience. Her expert advice on building and nurturing relationships, securing gifts and managing endowments is an invaluable roadmap to current and future nonprofit leaders. This book is a practical guide that will empower nonprofits to thrive in an increasingly dynamic charitable landscape. Every nonprofit leader should have this book on their desk."
- Nathan Chappell, Co-author of the Generosity Crisis: The Case for Radical Connection to Solve Humanity's Greatest Challenges

"The Endowment Handbook is chock full of practical and useful information to help charities of all sizes and complexities to better serve their constituencies, grow their institutions, and secure their economic future. This comprehensive guide is state-of-the-art, insightful, and easy to read with many real-life examples and success stories. The Endowment Handbook is an excellent training guide and reference manual. It should be required reading for all nonprofit leaders—both board and staff members."
- Diana S. Newman, Author and retired consultant to nonprofit organizations

"Laura MacDonald is one of the most insightful thinkers on philanthropy in the nonprofit world today. Our members have benefitted tremendously from her deep knowledge of fundraising trends and the philanthropic environment. But perhaps even more important is the way that she advocates for financial resilience and enduring relationships as fundamentals for organizations to deliver on their commitment to their communities. This book will be a vital guide for all of us in the years ahead."
- Simon Woods, President and CEO, League of American Orchestras

"As CEO of National 4-H Council, I have witnessed firsthand the transformative power of strategic financial management in advancing our mission. Laura MacDonald's Endowment Handbook is a timely and indispensable resource for nonprofit leaders navigating the complexities of financial resilience, particularly through endowment management. A standout feature of the book is MacDonald's nuanced exploration of strategic reserves, crucial for complementing traditional endowments, especially in times of crisis. The Endowment Handbook is a must-read for anyone committed to enhancing the financial resilience and impact of nonprofit organizations.
- Jill Bramble, CEO, National 4-H Council

“Drawing deeply upon her decades of experience in nonprofit leadership, fundraising, and philanthropy, Laura MacDonald has provided a timely and in-depth resource for nonprofit professionals, board members, and donors that will provide a practical guide to strengthening the organizations that serve the common good.”
- Una Osili, Ph.D., Associate Dean for Research and International Programs, Lilly Family School of Philanthropy, Indiana University

“Laura MacDonald provides this generation of philanthropy professionals a comprehensive look at how endowments can create lasting impact while also motivating donors and potential donors to give at the highest levels possible.  Her insights will help organizations establish thoughtful donor-centric methods for communicating the benefit and opportunity inherent in endowed funds.  Critically, Laura addresses the newest endowment tools available for crafting donor impact.  As a tool for good, this book creates momentum for organization executives, boards, and philanthropy leadership teams to address the opportunities endowments provide.”
- Ben Golding, CEO, Advancement Resources

In The Endowment Handbook: The Complete Guide to Building a Resilient Cause, veteran fundraising and nonprofit strategist Laura MacDonald delivers a comprehensive overview of endowments, reserves, and the donors who create them. The book explores the impacts of the Tax Cuts and Jobs Act, the pandemic, and social movements. It explores dramatic shifts in donor behavior, market performance, and donor perception of endowed funds (both positive and negative), as well as the growing understanding of strategic reserves.

You’ll learn how to attract new kinds of assets, from donor advised funds to cryptocurrency, and build relationships that will sustain your cause into the future. You’ll also discover how to execute critical endowment and reserve strategies, like preplanning, identifying and cultivating prospective donors, marketing, and measuring your progress.

The Endowment Handbook contains technical information describing the nature and structure of endowments, as well as some of the emerging critiques of this longstanding nonprofit funding mechanism, and a discussion of the rise of strategic reserves as a complement to endowment. It also explores effective messaging strategies for endowment funds, including techniques like the “follow-the-leader” effect and the use of “donor agency” as an effective fundraising tool.

The author also examines emerging technologies, like data screening, social media outreach, new behavioral research, and artificial intelligence, that you can use to increase donor engagement.

Interest in the financial sustainability of various nonprofit structures continues to grow and evolve. The Endowment Handbook is a key addition to that discussion, making it an ideal resource for those who manage, serve, or teach about all types of nonprofits. It applies equally to healthcare and human services, universities and museums, and anyone else seeking to leverage the enormous generational transfer of wealth to fuel a cause.