One of the most difficult and at the same time most important issues for NGOs is their financing. The sources are many: fundraising, grants, project partnerships, etc. Some organisations also decide to build up a capital endowment, a tool that is as demanding (in preparation and operation) as it is safe. For over 60 years, the Sue Ryder Foundation has accumulated huge social capital, which we now intend to coin into endowment capital. Time to start!
NGOs are largely subject to the same rules as the business sector. To operate effectively and without interruption, they need stable and sustainable financing. One of the forms of securing the functioning of an organisation is endowment. These are the means which will allow the Foundation to generate profits regardless of its fundraising activities. The most important rule of endowment is its inviolability and development.
Endowment allows us to look at the projects and the organisation itself on a long-term basis, without worrying about funds for further functioning. Of course, this requires a lot of knowledge and experience in the field of capital management, its investment and distribution. We are currently in the phase of planning social and marketing research and building a strategy for raising endowment capital. This is another element making the current functioning of the Foundation independent from both external grants and mechanisms within the organisation. As the coronavirus crisis has shown, even charity shops, where fundraising is more of a “transactional” character rather than being based solely on charity, do not guarantee the safe functioning of the Foundation. Further risk dispersion and income diversification are needed to strengthen the Foundation even more.
Can you help us build up our endowment capital? Don’t hesitate to visit us!