What I Wish Nonprofit Leaders Knew About Organizational Endowments

As a development professional, I spend a lot of time talking with nonprofit leaders about sustainability. Most are focused, understandably, on the next grant cycle, the next fundraiser, or the next year’s budget. But here’s the truth: long-term stability doesn’t come from short-term dollars alone. It comes from building something permanent.

That’s where organizational endowments come in.

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Endowments Aren’t Just for the “Big Guys”

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When people hear “endowment,” they often think of massive universities or hospitals with funds built over centuries and managed by entire finance teams. But an organizational endowment is different. It’s designed specifically for nonprofits of every size - including local food shelves, arts groups, and youth programs.

Endowments are truly transformational for nonprofits. We are currently working to grow Hartley’s endowment through a significant match challenge. If realized, this opportunity could support two full-time staff positions, one of the most challenging but essential expenses for any nonprofit—and help ensure the long-term success of Hartley Nature Center. We are deeply grateful for this support, which strengthens not only our organization but also the community we serve. Amy Demmer, Executive Director of Hartley Nature Center

At Boreal Waters, we partner with more than 60 local nonprofits to manage their organizational endowments. Some started with the minimum of $25,000 and grew steadily from there. You don’t need millions to get started. What you do need is the vision to see how even modest seeds, once invested, can grow into something that nourishes your mission year after year. Here are a handful of the organizations we currently partner with:

Why It Matters

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I’ve seen the difference an endowment makes. For nonprofits with organizational endowments, annual payouts provide:

• Reliability when fundraising feels uncertain.

• Flexibility to meet operating needs or fund specific programs.

• Donor confidence because supporters know their gift is building long-term impact, not just filling a short-term gap.

• Freedom for leaders to focus more on mission, and less on scrambling for the next dollar.

In other words: endowments let you lead with strategy instead of scarcity.

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What I Wish Nonprofit Leaders Knew

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• You don’t have to be big to build an endowment.

• You don’t have to know everything about investing, that’s what we’re here for.

• The best time to start is now. Even small contributions compound over time.

• An endowment is not about replacing annual fundraising, it’s about strengthening it with a permanent backbone of support.

• An endowment is a great option to attract those donors who would prefer to leave a legacy gift or a larger gift to support their favorite nonprofits for the long-term.

Our Second Harvest Michael E. Miner Hunger Endowment was created to honor the legacy of board member and friend Mike Miner. Our long-term goal is to feed our neighbors in perpetuity in NE Minnesota and NW Wisconsin. While we haven't yet drawn down our earnings we continue to grow our fund to a level that will allow us to ensure impactful results for families, children and seniors in our region. Whether to ensure nutritious food for families or programs that support the youth or elderly, we think it important to invest in long term solutions to meet our mission of ending hunger together. Shaye Moris, Executive Director of Second Harvest Northland

Let’s Talk

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Building an organizational endowment may feel like a big step, but you don’t have to do it alone. Our development team is here to walk alongside you. We’ll meet with you and your board to answer questions, demystify the process, and explore what an endowment could mean for your mission.

Together, we can ensure your work doesn’t just thrive today, it continues to grow and make an impact for generations to come.

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About the Author

Jessica Peterson is the Director of Development at Boreal Waters Community Foundation, where she has served for almost three years. With more than fifteen years of nonprofit experience, including as Development Director at the Depot Foundation and co-founder of Yellow Tree Theatre in the Twin Cities, Jessica loves connecting generous individuals and organizations with opportunities to leave a legacy in the communities they care about.

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