Operations

A Foundation Does Not an Endowment Make

By Lynn Thomas, Executive Director
Science of Mind Foundation

I get a lot of calls from Centers that ask either:

• How do I set up an endowment? or
• How do I set up a foundation?

After we talk, it usually turns out they want an endowment. The words endowment and foundation have almost become interchangeable, but they are different. 

What’s The Difference?
Centers that are thinking about setting up an endowment are setting up a fund to accept contributions, investing the contributions, receiving an annual income payout from a portion of the fund or investment earnings, and leaving the rest to be invested and grow over time. It’s like creating a growing, perpetual income stream.

Do you need an endowment? Yes!

When you set up a foundation, you are establishing a separate 501c3 charitable organization. Do you need a foundation?  No, you do not need foundation to have endowment.

You Need Two Things for an Endowment:

• Board approval,
• And a plan.

If your center wants to start an endowment or grow an existing one, I am here to walk you, your development committee, or your board through the steps to do that.  You can reach me at 720-279-1623 or lthomas@somfoundation.org. 

You can also go to www.somfoundation.org/center_building_your_endowment.html and click on the green link for a printable guide to get you started.