Event Highlights
Investing in Impact: Why Endowments Matter
On November 19, Detroit Philanthropy was pleased to host our final panel discussion of 2025 - it was a robust and timely conversation on the essential role endowments play in strengthening long-term nonprofit sustainability.
In today’s increasingly uncertain funding landscape, nonprofits are navigating fluctuating donor behavior, rising operational costs, and economic instability. Against this backdrop, endowments have become more than a strategic advantage. They are a critical tool for safeguarding organizations through challenging periods and empowering leaders to plan boldly for the future.
Pictured left to right: Randall Ross, Vice President, Donor Services, Community Foundation of Southeast Michigan; Andrew Camden, Managing Partner, Kercheval Financial Group; Tarsha Gale, Executive Director, Brilliant Detroit; Rachel Decker, President & Founder, Detroit Philanthropy; and Andrew Stein, CEO, Children’s Foundation.
Here are the key takeaways from the discussion:
Endowments provide permanent capital and long-term stability.
Endowments serve as a perpetual financial resource, generating annual support regardless of economic fluctuations. This permanent capital allows nonprofits to respond to unpredictable revenue cycles, support core programs even during downturns, and strategically invest in new opportunities when conditions are strong. Over time, an endowment becomes one of the most reliable and mission-aligned income streams an organization can build.
Endowments allow organizations to operate from a position of strength rather than urgency.
Without stable funding, nonprofits are often forced to make reactive decisions, resulting in the need to cut programs, delay growth, or reallocate staff. An endowment creates breathing room, giving leaders the ability to prioritize long-term impact over short-term crises. When financial pressures ease, organizations can stay focused on mission delivery, strategic growth, and deeper community engagement.
Endowments signal permanence and inspire donor confidence.
A well-structured endowment communicates that the organization is committed to serving its community for generations. Donors are more likely to invest in a mission that demonstrates long-term planning, fiscal responsibility, and staying power. Endowments become a powerful message to supporters: “We’re not just here today….we’re building for tomorrow.”
Clarity is the first step in any endowment conversation.
Before engaging donors or partners, organizations must articulate why an endowment matters. This includes defining the mission, the impact being delivered, and the strategic reasons the organization needs to exist for decades to come. Being able to clearly explain how an endowment supports future stability, program excellence, and community impact builds a stronger case for support.
Board and staff commitment is essential for successful endowment development.
Creating an endowment requires leadership alignment, including a board that understands the purpose, approves the structure, and champions the effort. Staff must also be prepared to dedicate time and energy to long-term donor education, stewardship, and planned giving outreach. Endowment building is not a short-term campaign. It is a sustained, organization-wide commitment.
Organizations must be prepared when partnering with institutions that manage or create endowments.
Entities such as community foundations and financial partners will require clear and accurate information to help establish an endowment. This includes leadership bios, governance structures, financial statements, annual fundraising goals, and multi-year projections. A board resolution authorizing the creation of an endowment is often a key step. Being prepared demonstrates professionalism and helps ensure the endowment is set up properly from the beginning.
Endowment funding should complement, not replace, annual or campaign giving.
A common misconception is that endowment fundraising competes with annual fund or special project support. In reality, endowment gifts typically come from different donor motivations, including legacy planning. It’s critical to communicate that the endowment is an additional opportunity for investment, not a substitute for the organization’s current year needs. Educating donors on the diverse ways to contribute is essential.
Small, consistent gifts play a major role in endowment growth.
Many people assume endowments are built exclusively through million-dollar bequests or contributions from wealthy donors. But most endowments grow through steady, modest gifts given over time. Donors who give $100–$500 annually and maintain that commitment over decades often become some of the most loyal supporters and may eventually include the endowment in their estate plans. Consistency builds culture, and culture builds endowments.
Frequent communication is key to endowment sustainability and growth.
Donors should hear about the endowment regularly. Sharing updates, success stories, impact, and testimonials helps donors understand how their long-term gifts make a difference. Ongoing communication keeps the endowment visible, reinforces its purpose, and encourages supporters to consider how they might participate in or expand its impact over time.
It’s important to be informed.
There are several local resources available to help you learn more.
Special thank you to our speakers for sharing their insights during our April Panel discussion.
Pictured from left to right: Lane Coleman, CEO, The Strike Group and Board Chair, The Detroit Institute of Arts; Rachel Decker, President & Founder, Detroit Philanthropy; Randall Melton, Vice President of Operations, Kroger Michigan and Board Chair, American Cancer Society Michigan; Rev. Dr. Louis Prues, Board Chair, Presbyterian Villages of Michigan.
The Board Chair: How to Effectively Leverage the Partnership
Here are some valuable takeaways from our panel held on April 17, 2025.
Having term limits for Board Members is essential for effective governance. Terms limits also require that a strong succession plan be in place so that incoming board chairs have an effective onboarding period. Working alongside current officers and executive leadership will help ensure a smooth transition.
Putting parameters around the expectations of individual Board Members is essential to keeping members active and engaged. Tell potential new board members exactly what is expected of them, so they know what they are signing up for. Are they required to make a personal contribution each year? Are they required to fundraise or bring in a sponsor or reach a financial commitment? Are they comfortable opening connections in their personal networks?
Be strategic about who you put on your board and use their strengths and connections in the community. Your board should be diverse not only across race and gender, but members should also come from different networks and spheres of influence. Utilizing a matrix with identified expertise, personal attributes, networks, industry, etc. can help to facilitate this process. Organizations need to be intentional and thoughtful about board composition.
Have a strong onboarding program for new Board members. Pair them with an existing member as a mentor for the first year that can give them an education on the history and vision of the organization and encourage them to explore which committee(s) could benefit from their skills and knowledge.
Ask board members to create personal accountability plans each year and share those with the Board Chair. Review the progress towards these goals together at quarterly one on one meetings. This will help to ensure everyone’s active participation. It also helps to allow board members to identify how they could be most helpful.
Make sure your board meetings are interactive. Don’t talk AT your board, create opportunities for open discussion. Create a structure where board members can share the things they are working on and areas that others can help.
Successful boards often get the majority of work done though committees. The Board Chair has a stake in the success of these committees and should either attend committee meetings or regularly converse with the committee chair so that progress and roadblocks can be discussed.
The relationship with your Board Chair and the nonprofit’s CEO is very important. Effective rapport is built by spending time together. Regular check-ins should be scheduled so that the two leaders build trust and a common understanding of their roles.
A Legacy of Giving: How Family Foundations Are Shaping Philanthropy
Special thank you to our speakers for sharing their insights during this our February panel discussion.
Pictured from left to right: Elizabeth Stieg, Executive Director, The Carls Foundation; Raquel Thueme, President, Ruth Mott Foundation; Darin McKeever, President & CEO, William Davidson Foundation; and Rachel Decker, President & Founder, Detroit Philanthropy.
Here are some valuable takeaways from our panel:
People First Approach: Whether convening community forums, investing in change agents, conducting site visits to understand capital needs, or emphasizing storytelling, our panelists stressed the importance of listening to their community and to their grantees. While maintaining the founder’s original intent and legacy is important to them, they also know that adapting to current needs is vital to ensure a thriving community.
Building Relationships is Crucial: It’s important to network, make connections, and ask for introductions, especially for nonprofit organizations that may not have been funded in the past. Also, family foundations often prefer direct conversations to learn about your organization, rather than relying solely on formal applications or proposals. Don’t be shy!
Data and Storytelling Go Hand-in-Hand: Foundations value both data and storytelling. It's crucial to consistently share your data while also telling your organization's story. What impact are you making? How are you fulfilling your mission? What outcomes are you experiencing?
Flexibility and Transparency in Grant Processes: Family foundations are beginning to emphasize simplicity, flexibility and transparency in the application process. Our panel all indicated that their aim is to make it easier for grantees by not requiring unnecessary information. A few of them even offer resources like information sessions.
Supporting Long-Term Impact Over Short-Term: Family foundations value transformational and catalytic initiatives that can make a significant, long-term impact. Our panelists all represented foundations who are charged with working in perpetuity to live out their founder’s intent. Because they have a long-term view, they like to understand how your nonprofit organization is providing enduring benefits.
Providing Support Beyond Grants: Our panelists understand the value of partnership. More than being just a funder, they want to work collaboratively with their grantees. They emphasized the value they place on allowing organizations to allocate funds where they are most needed. They understand that enabling flexibility and supporting capacity, allows them to build stronger organizations.
Rachel Decker
President
Having spent nearly 25 years in the nonprofit sector as a strategic fundraising and foundation executive, Detroit Philanthropy President Rachel Decker is passionate about helping others, making meaningful connections, solving problems and, most importantly, creating impact in our community. With the founding of Detroit Philanthropy, she turned that passion into a commitment to champion philanthropy throughout metro Detroit.
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