Think of your favorite nonprofit organization. What benefits does it offer to our community? What services would be missing if it closed its door? How would it affect our community?

A destructive economic climate has taken its toll on many worthwhile organizations. A vast majority of nonprofits are being asked to serve more clients with less funding and fewer staff members.

Nonprofits that have weathered these tough times are typically fortunate enough to have a strong endowment.

An endowment consists of donations that are carefully invested to yield a steady, reliable source of income to the organization in perpetuity. Endowments help maintain financial stability.

Just as your household has a checking account and a savings account, strong nonprofits have operational dollars and endowment dollars. A nonprofit’s endowment acts as a long-term savings plan that supports its operations and ensures its success into the future. Does your favorite charity have one? How about your church or your children’s school?

A typical endowment distributes approximately 5 percent of its funds each year to the charity for operational or programming purposes. Though 5 percent doesn’t sound like much, it can be when it’s given in perpetuity and when the endowment grows to the point of providing significant yearly funding for the organization. I know of a nonprofit organization whose endowment is so large that the annual distribution supports its entire fund-raising efforts. This means that 100 percent of donations received from businesses, individuals and families go directly to this organization’s programs. That’s right; zero percent goes to administration fees.

Would you like to give to an organization that covers all of its administrative costs on its own? I would. A nonprofit’s stability can be measured by its endowment, which demonstrates the organization’s commitment to continue supporting its community.

Donating to a nonprofit’s endowment can be one of the greatest gifts. It is important to support your favorite charity’s immediate annual goals, but if you can add to its endowment at least once a year, your gift provides longevity as well as annual support.

Support of an endowment can also be made through planned gifts such as charitable gift annuities, gifts of appreciated assets, gifts designated in a will or estate plan or gifts through a life insurance policy, individual retirement account, 401(k) plan or real estate.

As director of advancement at the Community Foundation of Greater Des Moines, I am fortunate to assist donors in supporting their favorite causes. The Community Foundation helps donors create legacies by establishing endowments that support the charities of their choice. In addition, the foundation manages more than 150 endowments established by nonprofit organizations.

Contributing to or establishing an endowment can be one of the most significant things you can do for a nonprofit, because it is truly the gift that keeps on giving!

Sheila Kinman is the director of advancement at the Community Foundation of Greater Des Moines.