Anchoring the Future: SBMM’s Endowment & Legacy Giving

A nonprofit endowment is a dedicated pool of donated funds that are invested for long-term support of the organization’s mission. The income can be used for various purposes, such as operational budgets, program funding or scholarships, while the principal is kept intact. This allows the endowment to grow over time. Endowments provide a sustainable source of funding for nonprofits offering a degree of financial stability and independence.

Generally, endowments are designed to keep their donated funds (the principal) intact and growing, spending only a portion of the investment income for organizational needs. Each year a portion of the endowment is paid out as an annual distribution to fund the organization. Any appreciation above the annual distribution is retained in the endowment so it can continue to grow.

Over the past several years the SBMM has been able to grow its endowment primarily through legacy gifts provided through planned giving and prudent investing. Museum members who name the Museum in their estate plans become members of the Flagship Society. The SBMM Flagship Society is a group of dedicated individuals who have made provisions in their estate plans to ensure the museum continues to educate and inspire future generations about the region’s rich maritime history. Over the past twelve months the Museum has received over $500,000 in gifts from Flagship members who named the Museum in their estate plans.

As mentioned above, each year a portion of the endowment’s income is distributed to the Museum which is used for organizational needs. The endowment has strengthened the Museum’s financial health and relationship with its donors.

Individuals may join the Flagship Society by making contributions to SBMM through one of the following planned giving opportunities:

• In your living trust or will
• Beneficiary of a life insurance policy
• By giving assets from a tax-deferred retirement plan, such as a 401(k) of IRA
• As a final legacy in a donor advised fund