10 Questions to Foster Endowment Transparency

Endowments can be great—they help weather fluctuations in the economy, provide opportunities for donors to support their favorite causes in perpetuity, and ensure a steady stream of mission-fulfilling dollars.

But, endowments can also be problematic, creating a barrier to giving because of the misperception that institutional wealth can be tapped at any time for any reason.

Demystifying your endowment—and ultimately raising more money—begins with readiness to respond to common questions and objections. And we’ve got the list right here!

1. What is the endowment?

It can be as helpful to explain what an endowment isn't as what it is. 

2. What is the value of original gifts to the endowment compared to the market value of those gifts today? 

Emphasize the impact of investments over the long term. 

3. How are distributions determined?

Share the target range for your spending rate and the rate for the most recent year. 

4. Why is spending from the endowment so limited?

Discuss organizational stability and longevity along with intergenerational equity. 

5. How much operating revenue does the endowment provide? 

A chart can go a long way here, showing the percentage of your operating budget that comes from the endowment, tuition, and other sources. 

6. Where does endowment revenue go?

What percentage goes to salaries, programs, research, general operations, etc.? 

7. Who manages the endowment?

Include the roles of the board, investment manager, finance and investment committees, and staff. 

8. How is the endowment invested?

Include the asset allocation at a minimum; or, add more detail by briefly describing the investment approach or philosophy. 

9. What laws, contracts, and policies apply to the endowment? 

Consider some or all of the following, as applicable to your organization: donor intent, gift agreements, divestment decisions, the Uniform Prudent Management of Institutional Funds Act (UPMIFA), and the One Big Beautiful Bill Act (OBBBA) of 2025. 

10. What do prospective endowment donors need to know? 

Minimum gift size, timing of the first distribution, type of assets that can be given, and stewardship are all worth including. 

These 10 questions are essential for communicating about your endowment, but they aren't a comprehensive strategy. 

Endowments aren't just about numbers or policies. The stories you tell about your endowment will change how people perceive it—and your institution. 

We’ll cover that in our next blog post.