Dear FFTC, 

I work for a school, and I want the best for our students—a quality education that prepares them for bright futures. However, it’s a persistent challenge to secure resources to fund academic programs, technology needs and scholarships. I’ve read that school endowments offer a sustainable solution by providing ongoing financial support, but I don’t know much about them. Can you explain what an endowment is and how schools like mine can establish and grow one to secure our long-term success? 

– Confused School Administrator 

Dear Confused School Administrator,

Thank you for your question. Securing sustainable funding for education can be a challenge, but school endowments are a powerful tool to help support that kind of financial stability. We’re happy to explain how they function and how FFTC can work with your school to build one.

An endowment is a pool of invested funds created to provide long-term financial support for a nonprofit organization. The principal of the fund remains intact while a spendable balance can be used for designated needs like tuition scholarships, academic programs, athletics, arts, capital facility improvements, or the general benefit of the school.

Unlike annual fundraising, endowments provide a stable, long-term source of income. While annual fundraising requires starting from scratch each year, an endowment generates consistent investment returns that can support educational institutions indefinitely. This stability allows schools to plan confidently, weather economic uncertainties, and reduce pressure on staff and volunteers like a parent-teacher association to meet yearly fundraising goals.

FFTC: A Trusted Partner for Endowment Management

In today’s ever-changing landscape, endowments also provide a buffer against uncertainties in funding. With ongoing conversations about federal education budgets and potential shifts in funding priorities, schools with endowments can maintain stability, ensuring that essential services remain intact regardless of external changes.

• Financial Security: Endowments provide a steady stream of income, reducing reliance on unpredictable fundraising efforts.
• Attracting Donors: Many donors are more inclined to make major gifts if they know their contributions will create a lasting legacy, especially with established organizations like FFTC known for their oversight and community impact.
• Long-Term Planning: Schools with endowments can better plan for future projects and educational enhancements.
• Institutional Independence: Endowments give schools more autonomy by reducing dependence on public funding and short-term grants.
• Supporting Innovation: Schools can invest in new programs, technology and teaching methods without diverting resources from existing priorities.
• Emergency Preparedness: Endowment funds can act as a financial safety net, helping schools navigate unexpected challenges such as economic downturns or enrollment fluctuations.

At FFTC, we specialize in helping schools and nonprofits create customized endowment solutions. With more than 65 years of experience managing charitable funds and more than $4 billion in assets, our expertise allows educational institutions to focus on their core mission while leaving the complexities of fund management to us.

Getting Started

Whether your school is just beginning to explore the idea of an endowment, or you are looking for better ways to manage an existing fund, Foundation For The Carolinas offers personalized guidance every step of the way. Together, we can build a sustainable future that ensures educational excellence for generations to come.

Interested in learning more? Contact us at nonprofits@fftc.org to start the conversation.