What is an Endowment?
A long-term source of support for work that matters.
An endowment is a charitable fund created to provide ongoing support for a nonprofit organization, program, or charitable purpose.
The fund is invested and managed over time. Each year, a portion is made available for grants while the remaining assets stay invested, allowing the fund to continue working for the future.
An endowment may be established by a nonprofit for its own work, or by an individual, family, or donor who wants to create lasting support for an organization they care about.
For Nonprofits
An endowment can create stability beyond annual fundraising, grants, or immediate gifts.
For Donors
An endowment creates a way to support meaningful work for years to come.
WATCH: What is an Endowment?
Learn how endowments work and how creating or giving to an endowment at the Community Foundation for Mississippi can make a lasting impact.
Why Establish an Endowment at CFM?
CFM manages the details behind the scenes, including investment oversight, fund administration, reporting, and gift processing.
That structure helps protect the purpose of the fund, while making it easier for nonprofits and donors to support the work over time. CFM can also help accept more complex charitable gifts, such as stock, real estate, retirement assets, life insurance, and other planned gifts.
For nonprofits, an endowment at CFM can reduce the burden on staff and board members, while giving donors added confidence in the organization’s future.
Benefits of an Endowment
An endowment can give nonprofits a stronger foundation for the future while giving donors a lasting way to support work they believe in.
More Predictable Funding
Annual distributions from an endowment can provide a steady source of support beyond annual fundraising, grants, or one-time gifts.
Long-Term Stability
Because the fund is invested and managed over time, an endowment can help an organization plan ahead and stay prepared through changes in funding, leadership, or community needs.
Donor Confidence
An endowment shows donors that the organization is thinking beyond today, with structure, oversight, and stewardship in place.
Support for Specific Programs or Priorities
Endowments can be created to support an organization’s overall mission or a specific program, initiative, or area of work.
Professional Management
When an endowment is held at CFM, the Foundation handles investment oversight, administration, reporting, and gift processing, helping reduce the burden on nonprofit staff and board members.
A Lasting Legacy
For donors, an endowment creates a way to support an organization or cause beyond their lifetime.
Benefits of an Endowment
An endowment can give nonprofits a stronger foundation for the future while giving donors a lasting way to support work they believe in.
More Predictable Funding
Annual distributions from an endowment can provide a steady source of support beyond annual fundraising, grants, or one-time gifts.
Long-Term Stability
Because the fund is invested and managed over time, an endowment can help an organization plan ahead and stay prepared through changes in funding, leadership, or community needs.
Donor Confidence
An endowment shows donors that the organization is thinking beyond today, with structure, oversight, and stewardship in place.
Support for Specific Programs or Priorities
Endowments can be created to support an organization’s overall mission or a specific program, initiative, or area of work.
Professional Management
When an endowment is held at CFM, the Foundation handles investment oversight, administration, reporting, and gift processing, helping reduce the burden on nonprofit staff and board members.
A Lasting Legacy
For donors, an endowment creates a way to support an organization or cause beyond their lifetime.
Endow Mississippi Tax Credit
Gifts of $1,000 or more to eligible endowed funds at the Community Foundation for Mississippi may qualify for the Endow Mississippi Tax Credit. This credit allows eligible donors to receive a 25% Mississippi state income tax credit for qualifying gifts to endowed funds.
Frequently Asked Questions
An endowment is created for the benefit of a nonprofit organization or charitable purpose, but it does not have to be started by the nonprofit itself.
A nonprofit may establish an endowment for its own future. An individual, family or donor may also establish an endowment to benefit a nonprofit they care about.
No. An endowment and planned giving are related, but they are not the same thing.
An endowment is a fund created to provide ongoing support for a nonprofit organization or charitable purpose.
No. An endowment is meant to complement annual fundraising, not replace it.
Nonprofits still need annual gifts, grants and other funding to meet current needs. An endowment helps create a source of future funding that can grow over time.
Endowment donors often include people who already know and trust an organization, such as longtime annual donors, current and former board members, volunteers, alumni, families and people who want their support to continue beyond their lifetime.
An endowment can support a specific nonprofit organization, charitable program or defined area of need. The fund agreement outlines the purpose of the endowment, helping ensure the resources continue to support the intended mission over time.
Endowments can be funded through many types of charitable gifts, including cash, appreciated stock, real estate, retirement assets, life insurance, bequests and other planned gifts.
CFM can work with donors, nonprofits and professional advisors to help determine what giving option may fit the donor’s goals and the fund’s purpose.
An endowment gives donors a way to make a lasting gift to an organization or cause they care about. It also gives them confidence that their gift will be managed with care, invested for the future and used according to the fund’s charitable purpose.
An endowment can help nonprofits build stability, receive more types of gifts and provide donors with a clear way to support the organization’s future.
When the endowment is housed at CFM, the nonprofit also receives added support with investment management, administration, reporting and gift processing.
Choose How You Want to Make an Impact
Start an Endowment
Create a long-term source of support for a nonprofit organization, program, or charitable purpose that matters to you. CFM can help you think through the fund’s purpose, structure, and next steps so your endowment is set up to support the work you care about for years to come.
Contact CFM