Daily Nuggets • • Tom Suddes
This is an issue that I believe impacts all FOR IMPACT ORGANIZATIONS. We’re caught up in an endowment arms race. We’re communicating that “We need ENDOWMENT now to build and preserve ENDOWMENT for future generations.”
ENDOWMENT, in and of itself, is NOT the goal! The goal is and always should be around Saving Lives, Changing Lives, Impacting Lives, etc.
And if that doesn’t get your attention, how about: No More Cash For Endowment.
Cash is a very, very expensive and difficult way to increase endowment. Very few investors want to give you their money so that you can invest it, generate an average 5% return, and then use that interest to fund an important priority. Plus, many of these investors are making five-year commitments/payments and would have to ‘wait’ to see the results and actual use of the funds.
Here’s a pretty simple way to look at it: a 5% IMPACT vs. a 100% IMPACT.
Money to fund people, programs, and places that help deliver your IMPACT – now (100%)
What every truly successful entrepreneur would do: They’d go to a bank, or to angels, or to the market, and BORROW MONEY (not put money in) so that they can LEVERAGE every dollar in order to GROW and SCALE their IMPACT RIGHT NOW!