If your non-profit or religious organization depends on annual grant writing and the generosity of its patrons, customers, or clientele to sustain the operating budget, you must make a change if you want your organization to last. It's no secret that charitable contributions from corporations and individual donors ebb and flow with the conditions of the economy. More and more households are subscribing to the "Charity Starts at Home" philosophy while the number of non-profit organizations asking for donations is growing by leaps and bounds.

Some organizations blame a perceived ambivalence of the younger generation and an unwillingness to put the same level of commitment into the long term stability of the organization. Others are struggling to embrace technology in their fundraising efforts. For many, however, the problem is operating year in and year out by raising money for current year operations, without a plan to build a long term fund that sustains the organization...an endowment fund.

The first step in starting an endowment fund is changing your mindset. That can be easier said than done when money is tight and the organization may be struggling to meet the operating budget, but this step is critical. It's important to not think of each dollar that comes in as a dollar that is going to be spent on current operations in the current year.

Of each dollar brought in through fundraising and donations, commit to setting aside a fixed percentage to build a long term endowment fund. Ideally, at some point the interest or dividends from that fund can help offset current expense needs and ultimately fully fund operations.

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