How Things Work
When Warren Buffett contributed a whopping $31 Billion to the Bill and Melinda Gates Foundation – aside from the size of his gift – the biggest surprise was that he put his money into an existing foundation instead of starting one of his own. When he was asked why, he responded, “What can be more logical, in whatever you want done, than finding someone better equipped than you are to do it?”
Not everyone who wants to give back to the community or support good causes wants to set up their own foundation. It’s costly. It’s time-consuming, and it requires a very large capital gift before it makes sense. Warren Buffett certainly had more than enough money to set up his own new foundation, but he also knew that building yet again another grant-making organization would eat up money that could be put to better use: spending it where it’s needed, not on overhead.
Endeavor is Northwest Arkansas’ smart alternative to trying to manage your own charitable giving program – or to setting up your own foundation. You can still have your charitable monies managed for growth. We’ll give you sound advice that helps you make smart giving choices. We’ll keep track of things and report to you on the impact you’ve made. You’ll experience the heartfelt joy and satisfaction from being a player in making Northwest Arkansas a more vibrant, healthier region. And you’ll still benefit from the same tax advantages as Warren Buffett.
We’re honored when people decide to partner with us by giving back through Endeavor Foundation instead of going it alone. When, like Warren Buffett, you benefit from economies of scale by sharing our staff with others.
When you join the Endeavor family, you have many options in supporting those causes that matter to you, your neighbors, and to the Northwest Arkansas region. These options might seem complicated, but things are simpler than they seem. You just need to think through four questions:
- Do you wish to contribute to an existing fund or establish a named fund?
- Do you wish to contribute to an endowment?
- How much grantmaking input do you desire?
- Do you wish to give now or plan to give?
Do you wish to contribute to an existing fund or establish a named fund?
Whether you want to start a legacy of charitable giving or leverage your gift with the power of others’, Endeavor Foundation gives you a number of ways to put your generosity to work.
Endeavor’s strategic focus funds were established to address the most critical needs of Northwest Arkansas. These needs were identified by thousands of our own residents–Northwest Arkansans interested in working strategically, efficiently, and quickly to provide real solutions to important community issues. Contributions to these funds are a great choice for donors looking to make a focused, meaningful impact in the short-term. By combining your gift with the gifts of others, the strategic focus funds leverage the power of many to create positive change in Northwest Arkansas.
Another way to leverage your gift is by contributing to one of the Foundation’s existing funds, partnering with other donors and organizations to meet an important, already established need. The Foundation currently has over 100 existing funds established by various individuals and organizations, each working to meet the charitable needs of a specific nonprofit organization or charitable cause. You can check them out HERE. There is a good chance that someone is already working in one of your areas of interest, or you may discover a cause you hadn’t previously thought of.
While giving to one of the Foundation’s Existing Funds appeals to many, some donors choose to leave their legacy in another way: by partnering with Endeavor Foundation in the establishment of a Named Fund. There are a number of reasons that lead donors to this result: maybe your charitable interests differ from those of the Foundation’s existing funds. Perhaps you want to create an opportunity to teach your children and grandchildren the importance of giving back. Or maybe your passion for a specific organization or community of faith compels you to help ensure its sustainability long after you’re gone. Regardless of the reason (and there are many more), Endeavor can help you meet these goals through the establishment of a Named Fund.
Do you wish to contribute to an endowment?
Deciding to give to (or establish) a fund at Endeavor Foundation is an important first step, but it’s not your only consideration. You’ll next want to consider the timeframe of your gift’s impact . Do you want to provide gradual, long-term support to an organization or cause; or would you like the ability to make a more immediate impact in the short-term? This is the question of whether or not to endow.
Quite simply, an endowment is a gift intended to last forever. Endowed funds are designed to keep the principal amount intact while using the investment income for grantmaking, providing a perpetual stream of income for organizations and charitable causes that matter to you. An endowment takes your commitments to ideals, organizations, and causes and gives those commitments a life of their own. Starting an endowment at Endeavor demonstrates more than just a present-day commitment to an organization or cause—it’s a gesture that shows real thought and consideration for the future of Northwest Arkansas.
The amount of your initial gift will determine the size of the gifts your endowment spins off. The more modest the endowment, the more modest the giving that is possible. If making an impact while you’re around to see it matters to you – unless you’re willing and able to make a large gift – contributing to, or establishing, an impact fund may be a more satisfying option. Because these funds are non-endowed, they can provide more immediate funding for causes and programs designed to address pressing community issues in need of short-term, high-impact funding.
How much grantmaking input do you want?
The next question to consider involves your specific role in the grantmaking process: how much input do you want in deciding when, where, and in what amounts those dollars are granted?
Considering just how much involvement and input is important to you is a personal question—there is no right or wrong answer. Also, that answer doesn’t have to be “all or none.” Our various funds offer different degrees of donor involvement and input–there are also different timetables for your involvement. Foundation staff will be happy to work with you to determine which of our fund options is appropriate based on your endowment and involvement preferences.
Do you wish to give now or plan to give?
Addressing the current needs of Northwest Arkansas is one of our primary goals at Endeavor, but it’s not the only one. We realize that there will always be pressing needs for Northwest Arkansas communities. Since Endeavor plans on being here for the duration, we know that future Foundation leaders will be dealing with issues we haven’t even begun to contemplate. That’s why planned gifts to the Foundation are also important.
Whether through a simple bequest in your will, or as part of a complex trust arrangement, your unrestricted, planned gift can ensure that Endeavor maintains the flexibility and resources necessary to address ever-changing community needs. Of course, you can also establish a restricted Named Fund through your estate plan that is designed to benefit a particular organization or cause. How you leave your legacy is up to you—just know that Endeavor can work with you and your professional advisor to develop a plan that ensures your legacy is realized.
Here’s the good news, you can’t go wrong no matter what you choose. Wherever, and whenever, you decide to participate, you’ll still be putting generosity to work for Northwest Arkansas. We’ll do our best to serve you no matter what you decide.
