PHOENIXVILLE COMMUNITY HEALTH FOUNDATION

Phoenixville Incentive for Endowment
An initiative of the
Phoenixville Community Health Foundation

• The growth cycle of community organizations starts as a volunteer effort, with one or two people being the driving force, and the scope of activities narrowed to one or two issues of direct impact on a neighborhood or community.
• Many initiatives never grow beyond this point. But some do. They increase the scope of their activities. As a result, they attract a more diverse group of people. The leadership becomes more defined and organized.
• It is from here that the non-profit organization emerges with legal standing and tax exemption. A true “grass-roots” organization operates with a budget that is less that $100,000 per year. Most operate with much less and still utilize volunteers for the achievement of the mission.
• The next step is the movement out of the “grass-roots” arena. This relates to the non-profit organization that has grown and matured administratively and programmatically. An organization, at this stage, usually has completed the first strategic plan, which is concerned about long-term sustainability. The organization begins to think about creating an endowment fund.
• For some non-profit organizations, building the endowment fund is a concerted, annual, effort. For others, the fund is initially set up with a designated donation and then left to grow on its own.
• PIE is a funding initiative that will create an incentive on a merit basis, for selected non-profit organizations to build and grow their endowment funds.

• The Boards of Directors of these organizations will be given training and technical assistance in the area of endowment building.
• As an incentive, Phoenixville Community Health Foundation will provide a $25,000 grant to each chosen organization to establish an endowment fund, or grow an existing dormant fund. This grant must be matched 1 / 2 [i.e.: the organization must raise $2 for every $1 granted]. The time limit for raising the matching funds is two years. If at the end of two years, when and/or if the match is met, then the Foundation will grant an additional $25,000 to the organization’s endowment fund. Thus, the participating organization will have a PIE of $100,000 if it successfully achieves the match.

1. Must have an operating budget $200,000 and $1,000,000 annually;
2. Must operate within the Phoenixville Community Health Foundation’s service area;
3. Must currently be without an endowment fund, or have a dormant fund of less than $100,000;
4. Must establish an Endowment Committee of it’s Board of Directors and be willing to participate fully in technical assistance and training sponsored by the Foundation.

• Debt ratio
• Equity ratio
• Litigation experience
• Operating Deficit/Surplus History
• Program expense ratio
• Strategic Plan Availability & Implementation
• Organizational structure
• Organizational readiness to undertake an Endowment Campaign
• Strength of Board

1. The Board’s role in Endowment fund raising
2. Creating & sustaining an Endowment-raising culture within the organization
3. How to choose a consultant
4. Identifying and cultivating prospects
5. Major Gifts: Solicitation strategies & Techniques
6. Planned Giving instruments available for implementing an endowment strategy

1. Provide a source of motivation for non-profit governing boards to begin a campaign to develop and/or grow an existing dormant endowment fund;
2. Provide a means to empower and educate non-profit governing boards on the value of endowment funds;
3. Provide non-profits a means top get to the next step in the growth and development of their organization’s quest for long-term financial sustainability;
4. Promote the creation of stronger and healthier non-profit organizations – both organizationally and financially so that they can better serve the community.