If you've ever caught yourself thinking, "endowments are for hospitals or universities, not organizations like ours," it’s time to tune in.

That assumption is exactly what Karen Houghton, CEO and Founder of Infinite Giving, wanted to challenge when she sat down with Bill Stanczykiewicz, Ed.D. on The Fund Raising School's podcast. And she does it with a reframe that's simple, but sticks with you.

We call it the nonprofit sector, and not the not-profit sector.

That distinction matters more than most of us realize. Nonprofits can and should generate surpluses. And when they do, they have a real opportunity to put that money to work, and not just to cover next quarter's budget, but to build something that sustains the mission for years, even decades, to come. That's what an endowment is really about.

Whether you're a nonprofit leader, a board member, or someone who cares deeply about the long-term health of mission-driven work, this conversation is worth your time.
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So, what is an endowment, exactly?

In plain terms, an endowment is a pool of invested funds where the principal stays intact and the investment returns, typically a percentage drawn annually, are used to support your organization's work. It's essentially a financial foundation that keeps giving.

Karen and Bill dig into what endowments actually are without the legal dictionary, and more importantly, what they mean for a growing, mission-driven organization. They're not complicated instruments reserved for institutions with nine-figure budgets. They're a tool, and like most tools, their value depends entirely on whether you pick them up and use them.

When does it make sense to start?

One of the most practical parts of the conversation is the discussion around timing. When does it actually make sense for an organization to start thinking about an endowment?

The short answer: earlier than you think, and smaller than you imagine.

Many nonprofits wait until they feel "big enough" or "established enough" to consider long-term investing. But the organizations that build real financial sustainability are the ones that start having the conversation now, even if the endowment itself starts small. Compound growth rewards patience, and the sooner your assets are working for you, the better.

It's also worth noting that starting doesn't mean committing to a massive campaign or overhauling your financial structure overnight. It means getting strategic. It means asking: if we had a surplus today, what would we do with it?

Financial stewardship shouldn't feel out of reach

One of the things Infinite Giving is most passionate about is accessibility. Endowments and smart investment strategies shouldn't be gatekept by institutional size or the ability to afford a CFO. 

Every nonprofit doing meaningful work deserves access to the same tools and thinking that help large organizations stay financially strong.

That's why conversations like this one matter. If financial stewardship has ever felt intimidating, overly technical, or simply not relevant to your organization's stage, then we hope this episode changes that.

Karen and Bill cover a lot of ground in a short time: the mechanics of endowments, how boards should think about fiduciary responsibility, common misconceptions, and how organizations of all sizes can take a more strategic approach to their financial future.

And if endowments are something your organization is starting to think about, or if you're not sure where to start, we'd love to talk. That's exactly what Infinite Giving is here for. Get started here.

DISCLOSURE
Infinite Giving Advisory Services Inc. is a registered investment adviser. Registration does not imply a certain level of skill or training. Advisory services are only offered to clients or prospective clients where Infinite Giving and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Infinite Giving unless a client service agreement is in place. This content is provided solely for informational purposes. Investors’ experiences may vary from the content. Nothing in this presentation constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Infinite Giving manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary.