With the tough economy, endowment plans can seem impractical or unnecessary.
Speaking during the recent Association of Fundraising Professionals’ annual conference, however, Harold A. Melser of the Lutheran Hour Ministries, said that endowment funds could be a stable, secure funding source.

Melser spoke of the Youth Exploring Science (YES) Plan that was implemented at the St. Louis Science Center and which is under review at the Lutheran Hour Ministries. Under YES: 

• A calculation on the amount needed per YES teen was prepared, based on information on the total expense of the YES program.
  
• When a gift is made using the YES program, the entire amount of the gift is used immediately to subsidize the YES program budget.
  
• To personalize the approach, a YES teen is selected to meet the donor, who is able to monitor the teen’s progress.
  
• If the donor chooses to follow through with the complete YES plan, the amount needed for a full endowment for the proportionate share of the program in support of one teen was based on current budget and anticipated need for up to $8,000 a year.
  
• Under the leadership of finance and development, a plan needs to be authorized that establishes a way to set aside the difference between the disbursements and income in a dedicated fund linked to the endowment.
  
• Through a staff-driven approach, the budget is analyzed for areas of funding priorities based on mission, historic donor support and greatest potential for major gift support.

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